India’s base oils supply exceeded demand for a fourth month in January even as the country’s output and imports dipped.The persistent surplus left buyers with high inventories and facing little urgency to add to those volumes unless they deemed prices to be competitive.India’s base oils output of 112,000t in January edged down from 114,000t in December to a four-month low, government data showed.The 12pc fall in output from year-earlier levels outpaced the 4pc drop in India’s total oil products output in January and contrasted with a rise in the country’s diesel production.Lower base oils output coincided with a fall in India’s imports in January from the previous month.The slowdown cut India’s total base oils supply, or output and imports combined, to less than 430,000t in January, from 445,000t the previous month.A drop in the country’s base oils and lube demand cushioned the fall in supply.Total demand, or domestic consumption and exports combined, fell to less than 365,000t in January, from around 380,000t the previous month.The surplus of supply over demand held steady in response at around 65,000t.The build-up of supplies left blenders well positioned to meet a seasonal pick-up in demand at the end of the first quarter of the year.It also left them well positioned to benefit from any rise in prices over the coming months.
India’s base oils supply exceeded demand for a fourth month in January even as the country’s output and imports dipped.The persistent surplus left buyers with high inventories and facing little urgency to add to those volumes unless they deemed prices to be competitive.India’s base oils output of 112,000t in January edged down from 114,000t in December to a four-month low, government data showed.The 12pc fall in output from year-earlier levels outpaced the 4pc drop in India’s total oil products output in January and contrasted with a rise in the country’s diesel production.Lower base oils output coincided with a fall in India’s imports in January from the previous month.The slowdown cut India’s total base oils supply, or output and imports combined, to less than 430,000t in January, from 445,000t the previous month.A drop in the country’s base oils and lube demand cushioned the fall in supply.Total demand, or domestic consumption and exports combined, fell to less than 365,000t in January, from around 380,000t the previous month.The surplus of supply over demand held steady in response at around 65,000t.The build-up of supplies left blenders well positioned to meet a seasonal pick-up in demand at the end of the first quarter of the year.It also left them well positioned to benefit from any rise in prices over the coming months.