Argentina’s base oils supply rose to a seven-month high in April on the back of a rebound in domestic production and firm imports.Total supply, or domestic base oils production and imports combined, rose to around 21,600 cubic meters (19,100 tonnes) in April, government data showed.The volume rose from close to 10,000 cubic meters the previous month to the highest since last September.Supply rose mostly because of a rebound in domestic base oils output to close to 14,000 cubic meters in April.The higher-than-usual volume followed a pause in production the previous month.The rise in base oils supply in April contrasted with a fall in demand amid an ongoing and sharp slide in the country’s lube consumption.Higher supply and lower demand triggered a jump in surplus volumes.A rise in surplus supply would complicate base oils distributors and blenders’ moves to minimize their inventories in response to falling consumption and high inflation.The higher surplus volumes duly raised the prospect of a slowdown in supplies in the coming months.Any such slowdown could be muted after supply lagged demand in February and March.The supply shortfall triggered a drop in Argentina’s base oils stocks to a five-month low in March.The rise in surplus supply in April helped to replenish those stocks.Even so, blenders’ preference to maintain lower inventories boosted the attraction of procuring smaller volumes more frequently from domestic sources.The trend would boost the attraction of maintaining domestic base oils output at higher levels and put more pressure on a slowdown in imports.Any such move would have the largest impact on the US, whose shipments accounted for more than half of Argentina’s base oils imports every month since last December. .Argentina’s April lube demand falls
Argentina’s base oils supply rose to a seven-month high in April on the back of a rebound in domestic production and firm imports.Total supply, or domestic base oils production and imports combined, rose to around 21,600 cubic meters (19,100 tonnes) in April, government data showed.The volume rose from close to 10,000 cubic meters the previous month to the highest since last September.Supply rose mostly because of a rebound in domestic base oils output to close to 14,000 cubic meters in April.The higher-than-usual volume followed a pause in production the previous month.The rise in base oils supply in April contrasted with a fall in demand amid an ongoing and sharp slide in the country’s lube consumption.Higher supply and lower demand triggered a jump in surplus volumes.A rise in surplus supply would complicate base oils distributors and blenders’ moves to minimize their inventories in response to falling consumption and high inflation.The higher surplus volumes duly raised the prospect of a slowdown in supplies in the coming months.Any such slowdown could be muted after supply lagged demand in February and March.The supply shortfall triggered a drop in Argentina’s base oils stocks to a five-month low in March.The rise in surplus supply in April helped to replenish those stocks.Even so, blenders’ preference to maintain lower inventories boosted the attraction of procuring smaller volumes more frequently from domestic sources.The trend would boost the attraction of maintaining domestic base oils output at higher levels and put more pressure on a slowdown in imports.Any such move would have the largest impact on the US, whose shipments accounted for more than half of Argentina’s base oils imports every month since last December. .Argentina’s April lube demand falls
