US base oils supply fell in August as a slide in imports outweighed firm domestic production.A rebound in exports moved a large portion of domestic output to overseas markets.The remaining supply was the lowest in five months and lagged demand for the second time in three months.The supply shortfall cut stocks and raised the prospect of limiting the size of a typical build-up of surplus volumes during the third quarter of the year.Domestic base oils and lube output held firm at 5.02 million barrels (706,000 tonnes) in August, government data showed.The volume was down from 5.05 million barrels the previous month.But it rose from year-earlier levels for a seventh straight month and exceeded the 5mn barrel/month level for the fourth time this year.Output exceeded that level just two times in all of 2023.Firm output volumes coincided with high base oils margins and increasingly weak diesel margins.The growing disconnect between base oils and diesel values added to the attraction for refiners to maintain higher output of the lubricant feedstock.Firm output volumes also raised the prospect of a rise in surplus supplies in the face of weak domestic demand.A slump in imports and surge in exports instead left supply lagging demand.US base oils imports slid to a three-month low in August amid a slump in shipments from the Middle East.The drop in shipments coincided with increasingly weak US Group III base oils prices relative to other markets like Europe.The dynamic incentivized refiners in markets like the Middle East to move more shipments to those other markets instead.US base oils and lube exports of more than 4 million barrels in August were the highest in five months.A pick-up in shipments to markets like Nigeria pointed to export prices that were at levels that facilitated such shipments.The US’ net supply, or output and net imports, duly fell to 1.98 million barrels in August.The volume fell from close to 3.30 million barrels the previous month to the lowest since March.The supply also lagged US domestic base oils and lube consumption of 2.35 million barrels in August.The shortfall triggered a fall in US stocks to close to a three-year low. It also increased the prospect of a lower-than-usual supply-build heading into the fourth quarter of the year..US’ August base oils/lube demand rises.US’ Aug base oils imports mixed
US base oils supply fell in August as a slide in imports outweighed firm domestic production.A rebound in exports moved a large portion of domestic output to overseas markets.The remaining supply was the lowest in five months and lagged demand for the second time in three months.The supply shortfall cut stocks and raised the prospect of limiting the size of a typical build-up of surplus volumes during the third quarter of the year.Domestic base oils and lube output held firm at 5.02 million barrels (706,000 tonnes) in August, government data showed.The volume was down from 5.05 million barrels the previous month.But it rose from year-earlier levels for a seventh straight month and exceeded the 5mn barrel/month level for the fourth time this year.Output exceeded that level just two times in all of 2023.Firm output volumes coincided with high base oils margins and increasingly weak diesel margins.The growing disconnect between base oils and diesel values added to the attraction for refiners to maintain higher output of the lubricant feedstock.Firm output volumes also raised the prospect of a rise in surplus supplies in the face of weak domestic demand.A slump in imports and surge in exports instead left supply lagging demand.US base oils imports slid to a three-month low in August amid a slump in shipments from the Middle East.The drop in shipments coincided with increasingly weak US Group III base oils prices relative to other markets like Europe.The dynamic incentivized refiners in markets like the Middle East to move more shipments to those other markets instead.US base oils and lube exports of more than 4 million barrels in August were the highest in five months.A pick-up in shipments to markets like Nigeria pointed to export prices that were at levels that facilitated such shipments.The US’ net supply, or output and net imports, duly fell to 1.98 million barrels in August.The volume fell from close to 3.30 million barrels the previous month to the lowest since March.The supply also lagged US domestic base oils and lube consumption of 2.35 million barrels in August.The shortfall triggered a fall in US stocks to close to a three-year low. It also increased the prospect of a lower-than-usual supply-build heading into the fourth quarter of the year..US’ August base oils/lube demand rises.US’ Aug base oils imports mixed
