India’s base oils supply fell to an eight-month low in August amid lower imports and a dip in domestic output to a one-year low.

Base oils production of 102,000t in August fell from 120,000t the previous month, government data showed.

Production fell even as India’s total refined oil products output extended its rise in August for a fourth month.

Lower base oils output coincided with increasingly squeezed regional base oils margins and increasingly strong diesel values versus crude oil.

The drop in base oils output coincided with a fall in India’s base oils imports in August to a seven-month low of less than 250,000t.

Lower output and imports cut India’s total base oils supply to close to 350,000t in August.

The volume fell from more than 450,000t in July to the lowest since December 2022.