Asia’s surplus of base oils supply over demand widened to a three-month high in November amid steady output and a seasonal drop in consumption from the previous month.The surplus widened to more than 140,000t in November, from less than 125,000t the previous month, government and industry data showed.The rising surplus mirrored a similar trend to the final months of 2022 and early 2023 and could trigger a pick-up in exports to more distant markets to avoid a large supply-build.The surplus rose to more than 240,000t in December 2022 and close to 210,000t in January 2023.The surplus of supply over demand likely lagged those levels in December 2023 amid firm demand in India and lower-than-usual supply from markets like Singapore and Taiwan.The surplus could widen more sharply this month.Regional demand usually falls sharply in the month of January from the previous month.At the same time, supply from markets like Taiwan showed signs of reverting closer to typical levels.The trend raised the prospect of a rise in Asia’s base oils exports, after they fell in November to a four-month low..Asia’s Nov base oils supply holds steady.Asia’s November lube demand mixed
Asia’s surplus of base oils supply over demand widened to a three-month high in November amid steady output and a seasonal drop in consumption from the previous month.The surplus widened to more than 140,000t in November, from less than 125,000t the previous month, government and industry data showed.The rising surplus mirrored a similar trend to the final months of 2022 and early 2023 and could trigger a pick-up in exports to more distant markets to avoid a large supply-build.The surplus rose to more than 240,000t in December 2022 and close to 210,000t in January 2023.The surplus of supply over demand likely lagged those levels in December 2023 amid firm demand in India and lower-than-usual supply from markets like Singapore and Taiwan.The surplus could widen more sharply this month.Regional demand usually falls sharply in the month of January from the previous month.At the same time, supply from markets like Taiwan showed signs of reverting closer to typical levels.The trend raised the prospect of a rise in Asia’s base oils exports, after they fell in November to a four-month low..Asia’s Nov base oils supply holds steady.Asia’s November lube demand mixed