Argentina’s base oils imports stayed unusually high in September, even amid a slowdown in shipments from the US.Imports instead got a boost for a second month from a wave of supplies from the Mideast Gulf.Total imports of 18,220mᶟ (16,140t) in September fell from 20,610mᶟ the previous month, government data showed.The volume was still the second highest in more than seven years. The highest during that time had been in August..Argentina’s base oils imports had previously averaged less than 7,000 mᶟ/month in the year to July.A large portion of its imports typically consisted of Group III base oils. The flows reflected Argentina’s ability to cover Group I requirements with its own domestic Group I production. But it had no Group III production capacity.The trend changed in August.The import volume had been larger than usual, with most of the supplies consisting of Group I base oils.The import volume was again larger than usual in September, following the delivery of another large shipment from the Mideast Gulf. The shipment likely again consisted of Group I base oils.The surge in Group I base oils imports likely reflected the competitive price of the shipments compared with domestic Group I supplies.The rise in supplies coincided with an almost complete halt in Argentina’s domestic base oils production in September.The surge in imports from the UAE likely reflected the competitive price of the shipments compared with supplies from the US. The country is typically Argentina’s largest overseas supplier.Argentina’s base oils imports in August had still included a large volume of supplies from the US. The September imports included a much smaller volume from the US.The rise in arbitrage shipments highlighted the healthy availability and lower prices of supplies in markets like Mideast Gulf and Asia-Pacific.The drop in domestic base oils production and in imports from the US highlighted the impact of those arbitrage shipments on typical production and trade flows.The trend raised the prospect of complicating moves to clear surplus US base oils shipments later in the year when domestic demand in the US typically faces a seasonal slowdown..US’ Aug base oils exports to Latam fall
