Argentina’s base oils supply fell to a four-month low in February as sliding lube demand slashed blenders’ feedstock requirements.Total supply, or domestic output and imports combined, fell to 12,000 cubic meters (10,600 tonnes) in February, government data showed.The volume fell from more than 18,600 cbm the previous month to the lowest since October.Supply from domestic sources accounted for more than 50% of the volume for a second month. The trend compounded the slowdown in import requirements.The slowdown coincided with a drop in Brazil’s demand for overseas base oils shipments as domestic output also accounted for a larger share of that country’s supplies.The slowdown in the two countries' requirements for overseas supplies put more pressure on US refiners to move more shipments to other markets instead or to cut prices for their supplies.The US is the largest source of overseas base oils supplies for both Argentina and Brazil.Brazil’s domestic base oils output accounted for a rising share of its supplies in February following the completion of a heavy round of plant maintenance work that took place in second-half 2023.Argentina’s domestic base oils output accounted for a rising share of the country's supplies in the first two months of the year because of other factors.The depreciation of the country’s currency boosted the cost of imports in local currency terms.A sharp economic contraction and sliding lube consumption boosted the attraction for blenders to maintain lower feedstock inventories and to cover requirements on a need-to basis.The move boosted the attraction of securing smaller volumes for prompt delivery from domestic sources..Brazil’s February base oils supply falls
Argentina’s base oils supply fell to a four-month low in February as sliding lube demand slashed blenders’ feedstock requirements.Total supply, or domestic output and imports combined, fell to 12,000 cubic meters (10,600 tonnes) in February, government data showed.The volume fell from more than 18,600 cbm the previous month to the lowest since October.Supply from domestic sources accounted for more than 50% of the volume for a second month. The trend compounded the slowdown in import requirements.The slowdown coincided with a drop in Brazil’s demand for overseas base oils shipments as domestic output also accounted for a larger share of that country’s supplies.The slowdown in the two countries' requirements for overseas supplies put more pressure on US refiners to move more shipments to other markets instead or to cut prices for their supplies.The US is the largest source of overseas base oils supplies for both Argentina and Brazil.Brazil’s domestic base oils output accounted for a rising share of its supplies in February following the completion of a heavy round of plant maintenance work that took place in second-half 2023.Argentina’s domestic base oils output accounted for a rising share of the country's supplies in the first two months of the year because of other factors.The depreciation of the country’s currency boosted the cost of imports in local currency terms.A sharp economic contraction and sliding lube consumption boosted the attraction for blenders to maintain lower feedstock inventories and to cover requirements on a need-to basis.The move boosted the attraction of securing smaller volumes for prompt delivery from domestic sources..Brazil’s February base oils supply falls