US base oils and lube output stayed lower than usual and in a narrow range in November even after the completion of plant maintenance work.

The low volume coincided with low US distillates stocks and high diesel prices relative to crude. The trend incentivized refiners to focus on producing more middle distillates and limiting their base oils output.

The low volume also curbed a build-up of surplus supplies at the end of last year. The smaller surplus in turn limited the number of cargoes that refiners sought to move to overseas markets like India.

Output faced the prospect of further downward pressure from the start of this year with the scheduled resumption of plant maintenance work from end-January.

US base oils and lube output of 4.65mn bl (655,000t) in November rose from 4.41mn bl the previous month, EIA data showed.

Output still fell from year-earlier levels for an eighth month.

The slowdown cut total base oils and lube production to 52.85mn bl in the first eleven months of the year. The volume was down 6pc from 55.93mn bl during the same period in 2021.

US base oils output held well below typical levels because of prolonged maintenance work or production issues from the start of the year.

The maintenance work peaked during the third quarter of the year, before pausing in early November for a couple of months.

Unusually high diesel prices relative to crude also incentivized refiners to redirect feedstock supply towards maximizing production of distillates rather than products like base oils.

Distillates production accounted for more than 47.7pc of US Gulf coast refiners’ total oil products output in October and November. The share was up from average levels of less than 45pc in 2021.

Base oils’ share of US Gulf coast refiners’ oil products output edged up to 1.84pc of the total in November, from 1.74pc the previous month.

It was still unusually low and down from average levels of more than 2.20pc in 2021.

Paraffinic base oils output got a boost in November from a recovery in production in the US Texas Gulf coast region to 1.33mn bl. Output had fallen to a twenty-month low of less than 980,000bl in October.

The drop in output coincided with scheduled plant maintenance in the US Gulf coast market in October.

Output in the US West coast also held firm at 396,000bl in November.

The volume was similar to the previous month and up from average levels of less than 90,000 bl/month in the four months to September.