US base oils and lube output held close to an 11-month low in February amid a sustained drop in production in the Louisiana Gulf coast region.

Output of 4.62mn bl (650,700t) in February was almost the same as production of 4.60mn bl the previous month, government data showed.

The lowest output volume before January had been in March 2021, when a swathe of refineries was still recovering from damage and unexpected shutdowns the previous month.

The plants were shut down after an arctic storm struck the southern US region in February 2021.

US base oils and lube output still fell at the beginning of this year despite the lack of any such unexpected forces of nature.

A drop in production like this typically coincides with planned or unscheduled plant maintenance work.

The lower output also coincided with increasingly squeezed base oil premiums to crude and diesel. The trend incentivized refiners to produce more of the motor fuel instead.

Competition with other fuels has increased further since then as feedstock supply tightens because of sanctions on Russia.

Base oils and lube output fell in February from the previous month in the US East coast, West coast and Midwest regions.

Output rose in the US Gulf coasts region. But it remained close to an 11-month low. Like in January, the low production level was concentrated in the Louisiana Gulf coast region.