Argentina’s base oils supply fell to a five-month low in March amid signs of moves to minimize base oils and lubricants stocks.A sharp and sustained slump in the country’s lube consumption and high inflation boosted the importance of slashing inventory levels.The trend increased the attraction of and need to procure smaller base oils volumes more regularly.Tighter availability of supplies from domestic sources in turn boosted the attraction of imports from sources that were logistically closer to Argentina.The trend simultaneously cut the attraction of arbitrage shipments from more distant markets such as Asia-Pacific.The US was the key beneficiary of such a dynamic.The development could support steadier demand for its base oils supplies even at a time when Argentina’s lube consumption continued to slide.Argentina’s base oils supply, or output and imports combined, fell to 10,000 cubic meters (8,900 tonnes) in March, government data showed.The volume fell from an already-low 12,000 cubic meters in February and by 33% from year-earlier levels.Supply fell because of a pause in Argentina’s domestic base oils output for the first time in years.The lack of supply from domestic sources left buyers reliant on imports and inventories.Argentina’s base oils imports of 10,000 cubic meters in March duly rose to a six-month high.More than 90% of the volume was shipments that originated from the US.The share was the highest in six months and up from a 71% share of Argentina’s total imports in 2023.Any extension of the trend would be a boon for US refiners that continued to face persistent surplus base oils supplies during the second quarter of the year..Argentina’s March lube demand falls.US’ February base oils exports improve
Argentina’s base oils supply fell to a five-month low in March amid signs of moves to minimize base oils and lubricants stocks.A sharp and sustained slump in the country’s lube consumption and high inflation boosted the importance of slashing inventory levels.The trend increased the attraction of and need to procure smaller base oils volumes more regularly.Tighter availability of supplies from domestic sources in turn boosted the attraction of imports from sources that were logistically closer to Argentina.The trend simultaneously cut the attraction of arbitrage shipments from more distant markets such as Asia-Pacific.The US was the key beneficiary of such a dynamic.The development could support steadier demand for its base oils supplies even at a time when Argentina’s lube consumption continued to slide.Argentina’s base oils supply, or output and imports combined, fell to 10,000 cubic meters (8,900 tonnes) in March, government data showed.The volume fell from an already-low 12,000 cubic meters in February and by 33% from year-earlier levels.Supply fell because of a pause in Argentina’s domestic base oils output for the first time in years.The lack of supply from domestic sources left buyers reliant on imports and inventories.Argentina’s base oils imports of 10,000 cubic meters in March duly rose to a six-month high.More than 90% of the volume was shipments that originated from the US.The share was the highest in six months and up from a 71% share of Argentina’s total imports in 2023.Any extension of the trend would be a boon for US refiners that continued to face persistent surplus base oils supplies during the second quarter of the year..Argentina’s March lube demand falls.US’ February base oils exports improve
