Americas April base oils supply slips

Base oils supply in the Americas region fell back in April as lower output in US and Canada outweighed firmer volumes in South America.

Base oils supply fell below 760,000t in April, down by 7pc from more than 810,000t the previous month, according to production data from major base oil-producing countries in the region.

Even with the slowdown, total supplies of 3.05mn t in the first four months of the year were up 5pc from 2.91mn t during the same period last year. The volume was the highest in at least three years.

Base oil supplies have risen even as surging diesel prices incentivized refiners to focus on producing more middle distillates.

The impact of any such moves has been muted so far.

The rise in supplies coincided with and helped to meet firmer lube demand in key markets throughout the region. The strong demand gave base oils and lubricant producers more leverage to pass on rising costs through higher prices.

The higher volumes allowed some regional buyers to curb their requirements from markets like the US.

They allowed other suppliers like the US to sustain firm export volumes to key overseas markets like Europe, where prices were high and availability tight.