Argentina’s base oils supply rebounded in August amid a simultaneous recovery in output and imports.Supply got a further boost from a pause in exports and weaker domestic demand, as well as the arrival in September of several more shipments from the US.The rise in supply could curb any immediate requirements for additional base oils shipments from overseas markets.Weak domestic lube demand and the volatility of the country’s currency versus the US dollar could instead boost the incentive for blenders to keep low stocks and procure smaller volumes from domestic sources.Any such moves could limit buyers’ interest in surplus base oils shipments from the US.The moves could also cushion the impact of any dip in supplies from the US during a round of plant maintenance in the country over the coming weeks.Argentina’s base oils supply recovered to more than 22,000 cubic meters (19,800 tonnes) in August, government data showed..The volume rebounded from a five-year-low of less than 5,000 cubic meters the previous month.Supply fell in July mostly because of a slump in the country’s base oils output to the lowest since the first quarter of 2024.The unexpected fall in output contrasted with higher-than-usual production levels during most of the previous year..The higher output during that period helped to support an unusual and sustained rebound in Argentina’s base oils exports since the fourth quarter of last year.The rebound in exports tapped tight supply-demand fundamentals and firm prices for Group I base oils in overseas markets.The fall in Argentina’s base oils output in July triggered a subsequent pause in such shipments.The halt in exports extended to August, even with the recovery in supply.The dynamic raised the prospect of a resumption of base oils exports from Argentina in the coming months.Any such moves would coincide with lower Group I prices in US and Europe and follow a rise in US shipments of Group I base oils to West Africa and India during the third quarter of the year..Argentina’s July base oils supply falls.Latin America’s July lube demand rises.Base Oil News stories and analysis also available on ICIS platform
