Base oils supply in the Americas market held steady in November, contrasting with a sharp fall in demand.The diverging trends boosted the need for a rise in US base oils exports to avoid a large supply-build.US exports duly surged in November and in December, curbing the size of any such rise in surplus volumes.Latin America was a key destination for those exports.A recovery in Latin America’s base oils supply in November and December, combined with more muted demand, raised the prospect of curbing the region’s ability to absorb more supplies from the US.Any such trend would force more surplus supplies from the US to target other markets instead.The Americas’ total base oils output of close to 660,000t in November was similar to the previous month, government data showed.Supply held steady as higher output in Brazil and Argentina countered a drop in production in the US.The November volume still fell by 7pc from year-earlier levels to an eight-month low.The sustained slowdown cut total supply to around 7.6mn t in the first eleven months of the year.The volume fell by 6pc from 8.1mn t during the same period a year earlier to the lowest in more than five years.The steady output in November contrasted with a slump in US demand and more muted consumption in Latin America.A surge in US exports in November helped to clear the surplus.The shipments included around 150,000t to Latin America and Mexico combined.The volume exceeded Latin America’s net demand of less than 130,000t in November.The trend suggested more surplus supplies from the US would need to move to other regions to avoid a large supply-build in Latin America..Latin America’s Nov lube demand growth slows.US’ November base oils supply falls.Brazil's Dec base oils supply exceeds demand
