Base oils supply in the Americas rose to a seven-month high in December at the same time as demand in the region fell to a multi-year low.The disconnect triggered a rise in surplus supply to the highest in years and the need to boost exports to clear the surplus.Rising base oils supply in Latin America also met more of that region’s requirements.The move cut its need for additional supplies from overseas markets like the US.The dynamic increased pressure on US refiners to redirect more supplies to other markets instead.The trend showed signs of continuing through the first few months of this year.The Americas’ total base oils output jumped to more than 770,000t in December, government data showed. The volume rose from around 662,000t in each of the previous two months to the highest since May.The rise in supply contrasted with a slump in US base oils and lube demand to a record low in December and a dip in Latin America’s consumption to a fourteen-month low.Latin America’s rising supply in December also cut its shortfall to demand to less than 115,000t.The volume was down from average levels of more than 140,000 t/month during the previous four months.The smaller shortfall cut the region’s requirements for supplies from the US.The drop in requirements contrasted with a rise in US base oils exports to Latin America in December to a three-month high.The disconnect added to the region’s surplus supplies, raising the prospect of curbing for even longer its requirements for additional supplies..US’ Dec base oils/lube supply rises.Latin America’s Dec lube demand falls
Base oils supply in the Americas rose to a seven-month high in December at the same time as demand in the region fell to a multi-year low.The disconnect triggered a rise in surplus supply to the highest in years and the need to boost exports to clear the surplus.Rising base oils supply in Latin America also met more of that region’s requirements.The move cut its need for additional supplies from overseas markets like the US.The dynamic increased pressure on US refiners to redirect more supplies to other markets instead.The trend showed signs of continuing through the first few months of this year.The Americas’ total base oils output jumped to more than 770,000t in December, government data showed. The volume rose from around 662,000t in each of the previous two months to the highest since May.The rise in supply contrasted with a slump in US base oils and lube demand to a record low in December and a dip in Latin America’s consumption to a fourteen-month low.Latin America’s rising supply in December also cut its shortfall to demand to less than 115,000t.The volume was down from average levels of more than 140,000 t/month during the previous four months.The smaller shortfall cut the region’s requirements for supplies from the US.The drop in requirements contrasted with a rise in US base oils exports to Latin America in December to a three-month high.The disconnect added to the region’s surplus supplies, raising the prospect of curbing for even longer its requirements for additional supplies..US’ Dec base oils/lube supply rises.Latin America’s Dec lube demand falls
