Americas’ Jan base oils supply rises

Base oils supply in the Americas rose to a six-month high in January as rising US output outweighed a drop in production in Brazil and Argentina.

The rise in supply complicated moves to clear a surge in US base oils inventories at end-2022.

The higher supply and more muted demand kept pressure on prices.

The rise in supply also partially countered the impact of a slowdown in arbitrage shipments from Asia-Pacific.

Total supply of around 754,000t in January rose from almost 735,000t the previous month to the highest since last July, according to production data from major base oil-producing countries in the region.