South Korea’s base oils output held firm in August even as it edged down from the previous month.The lower volume contrasted with a surge in the country’s base oils exports that month to their highest in more than a year.Total base oils output of 2.72 million barrels (383,000 tonnes) in August fell from 2.81 million barrels the previous month, industry data showed.Output held firm in a relatively narrow range since May, after dipping during the previous two months because of plant maintenance work.The slight drop in output and rebounding exports in August left South Korea with a net supply shortfall and reversed a build-up of surplus supplies during the previous two months.The shortfall preceded the shutdown of a major base oils unit in South Korea in September and October for scheduled maintenance work.The tighter supply could curb domestic refiners’ ability to maintain steady exports during those months, while the plant maintenance work was taking place.At the same time, the surge in South Korea’s base oils exports in August helped to replenish buyers’ inventories ahead of the plant shutdown.Buyers' higher stocks should cushion against any drop in supply and help to cover for a typical seasonal pick-up in regional demand from the end of the third quarter.South Korea’s lower stocks in August also cut domestic refiners’ exposure to any subsequent base oils price volatility.That exposure of price volatility instead passed on to buyers that added to their inventories ahead of the shutdown.Buyers’ higher stocks could in turn cushion them against any immediate repercussion from the surge in crude oil prices since the start of this month..S Korea’s August base oils exports rise.Asia’s lube demand faces Q4 slowdown
South Korea’s base oils output held firm in August even as it edged down from the previous month.The lower volume contrasted with a surge in the country’s base oils exports that month to their highest in more than a year.Total base oils output of 2.72 million barrels (383,000 tonnes) in August fell from 2.81 million barrels the previous month, industry data showed.Output held firm in a relatively narrow range since May, after dipping during the previous two months because of plant maintenance work.The slight drop in output and rebounding exports in August left South Korea with a net supply shortfall and reversed a build-up of surplus supplies during the previous two months.The shortfall preceded the shutdown of a major base oils unit in South Korea in September and October for scheduled maintenance work.The tighter supply could curb domestic refiners’ ability to maintain steady exports during those months, while the plant maintenance work was taking place.At the same time, the surge in South Korea’s base oils exports in August helped to replenish buyers’ inventories ahead of the plant shutdown.Buyers' higher stocks should cushion against any drop in supply and help to cover for a typical seasonal pick-up in regional demand from the end of the third quarter.South Korea’s lower stocks in August also cut domestic refiners’ exposure to any subsequent base oils price volatility.That exposure of price volatility instead passed on to buyers that added to their inventories ahead of the shutdown.Buyers’ higher stocks could in turn cushion them against any immediate repercussion from the surge in crude oil prices since the start of this month..S Korea’s August base oils exports rise.Asia’s lube demand faces Q4 slowdown
