Argentina March base oils output falls

Argentina’s base oils output fell to a five-month low in March, ending a recovery in production during the previous three months.

Output of 3,650mᶟ (3,230t) in March fell from 11,890mᶟ in February and by 45pc from year-earlier levels, government data showed.

Output had risen to almost 10,000 mᶟ/month in the three months to February, up from less than 3,000 mᶟ/month during the previous six months.

The drop in output during second-half 2022 coincided with the arrival of a wave of arbitrage shipments from markets like Mideast Gulf and South Korea.

The rise in base oils output early this year balanced out a slowdown in imports.

The fall in output in March boosted the need for a pick-up in imports to avoid a supply shortfall.