Argentina’s base oils supply rose in September to the highest in almost four years as the arrival of a wave of shipments from the US added to firm domestic output.The rise in supply contrasted with weaker domestic lube demand, as well as a pause in base oils exports for a third month.The surplus of supply over demand duly surged to a multi-year high.Rising surplus base oils and lubricants inventories raised the prospect of a slowdown in demand for additional supplies as buyers first worked down those existing stocks.Any such slowdown in demand would trim the number of outlets for surplus supplies to target from overseas markets like the US.Argentina’s base oils supply, or domestic output and imports combined, rose to 28,000 cubic meters (25,000 tonnes) in September, government data showed..Supply rose from an-already-high volume of close to 23,000 cubic meters in August to the highest since the beginning of 2022.Supply rose as a jump in shipments from the US lifted total imports to a two-year high.Higher supply contrasted with weaker demand..Total demand, or lube consumption and base oils exports combined, slipped to 19,300 cubic meters in September.The volume fell by 10% from year-earlier levels to an eight-month low.Demand fell as a pause in base oils shipments to overseas markets continued for a third month.The pause in shipments removed a key support that cushioned the impact of weak domestic lube consumption during the first half of the year.Weaker demand and rising supply triggered a jump in Argentina’s supply-surplus in September to the highest since 2021.Argentina's rising surplus in turn boosted the incentive and need for a resumption of base oils exports.A large cargo of Group I base oils duly loaded from Argentina in first-half October before heading to Nigeria..Argentina’s Sept lube demand falls.Brazil’s Sept base oils supply matches demand
