India’s lube demand rose in August for the fourth time in five months, limiting the opportunity for blenders to replenish shrinking base oils stocks.Lube consumption of 363,000 tonnes in August rose by 11% from year-earlier levels, government data showed.The volume edged down only slightly from 372,000 tonnes the previous month.India’s lube demand usually falls sharply in the month of August from July as monsoon rains curb market activity.The country’s passenger-vehicle, tractor and commercial vehicle sales fell in August partly because of heavier-than-usual rainfall during the month.India’s lube consumption fell by more than 65,000 tonnes in August from July in 2022 and in 2023, reflecting a similar slowdown in activity.The 9,000-tonne drop in lube consumption in August from July this year was much smaller than that.The relatively steady lube consumption complicated moves by blenders to replenish base oils inventories after demand already exceeded supply for five straight months to July.The lack of a major clear-out of any surplus base oils supplies in Asia in recent months, or offers of cargoes at steeply-discounted prices, complicated further any moves to replenish stocks.The closed arbitrage from US to Asia also curbed the volume of shipments from that market to India.Blenders now faced the prospect of a seasonal pick-up in lube consumption from the end of the third quarter of the year with lower-than-usual stocks.They also faced the prospect of tighter availability from one of India’s key overseas base oils suppliers because of scheduled maintenance work starting at its plant in mid-September.India’s imported base oils cargo prices for Group II light-grade supplies reflected signs of firmer supply-demand fundamentals.The premium of CFR India Group II N150 over FOB NE Asia cargo prices widened to around $45/tonne in recent weeks, from a discount to FOB prices at end-May.The premium of CFR India Group II N70 prices over Singapore gasoil prices rose this month to the highest since late last year.The premium contrasted with a discount to Singapore gasoil prices throughout August 2023..India’s July base oils supply lags demand.S Korea’s July exports to India/Mideast Gulf stay lower.Saudi Arabia’s July Yanbu/Jeddah exports fall
India’s lube demand rose in August for the fourth time in five months, limiting the opportunity for blenders to replenish shrinking base oils stocks.Lube consumption of 363,000 tonnes in August rose by 11% from year-earlier levels, government data showed.The volume edged down only slightly from 372,000 tonnes the previous month.India’s lube demand usually falls sharply in the month of August from July as monsoon rains curb market activity.The country’s passenger-vehicle, tractor and commercial vehicle sales fell in August partly because of heavier-than-usual rainfall during the month.India’s lube consumption fell by more than 65,000 tonnes in August from July in 2022 and in 2023, reflecting a similar slowdown in activity.The 9,000-tonne drop in lube consumption in August from July this year was much smaller than that.The relatively steady lube consumption complicated moves by blenders to replenish base oils inventories after demand already exceeded supply for five straight months to July.The lack of a major clear-out of any surplus base oils supplies in Asia in recent months, or offers of cargoes at steeply-discounted prices, complicated further any moves to replenish stocks.The closed arbitrage from US to Asia also curbed the volume of shipments from that market to India.Blenders now faced the prospect of a seasonal pick-up in lube consumption from the end of the third quarter of the year with lower-than-usual stocks.They also faced the prospect of tighter availability from one of India’s key overseas base oils suppliers because of scheduled maintenance work starting at its plant in mid-September.India’s imported base oils cargo prices for Group II light-grade supplies reflected signs of firmer supply-demand fundamentals.The premium of CFR India Group II N150 over FOB NE Asia cargo prices widened to around $45/tonne in recent weeks, from a discount to FOB prices at end-May.The premium of CFR India Group II N70 prices over Singapore gasoil prices rose this month to the highest since late last year.The premium contrasted with a discount to Singapore gasoil prices throughout August 2023..India’s July base oils supply lags demand.S Korea’s July exports to India/Mideast Gulf stay lower.Saudi Arabia’s July Yanbu/Jeddah exports fall
