Argentina’s base oils supply fell to a seven-month low in May as imports almost ground to a halt.Total supply came to 9,500 cubic meters (8,500 tonnes) in May, with imports accounting for less than 3% of the volume, government data showed.The drop in supply followed and balanced out an unusually large volume of more than 21,500 cubic meters the previous month.Supply averaged close to 17,000 cubic meters/month in 2023.The slowdown in May highlighted blenders’ focus on maintaining lower stocks at a time when the country’s lube demand continued to slide, even if more slowly than in the first four months of the year.The slump in base oils imports similarly highlighted blenders' moves to secure more supplies from domestic sources.The strategy enabled buyers to procure smaller volumes more frequently and with a faster delivery time.The moves to maintain lower inventories and to replenish stocks with local supplies was likely to continue while lube demand continued to slide.A rise in blenders’ lube stocks in May was likely to curb further any urgency to procure additional base oils supplies as they first worked down those higher inventories.Even so, any moves to hold off procuring more overseas shipments until there were clearer signs of a recovery in consumption could leave supply lagging demand until the overseas cargoes arrived.Argentina’s lower demand for overseas base oils shipments in the first quarter of the year compounded pressure on US refiners seeking to clear a large volume of surplus supplies at the time.Lower demand for overseas base oils supplies in the second quarter and over the coming months would likely have a more muted impact.The lower demand this time coincided with tighter US base oils supply and firm demand in other markets like Brazil..Argentina’s May lube demand falls more slowly.Brazil’s May lube demand extends rise.US April base oils supply edges down
Argentina’s base oils supply fell to a seven-month low in May as imports almost ground to a halt.Total supply came to 9,500 cubic meters (8,500 tonnes) in May, with imports accounting for less than 3% of the volume, government data showed.The drop in supply followed and balanced out an unusually large volume of more than 21,500 cubic meters the previous month.Supply averaged close to 17,000 cubic meters/month in 2023.The slowdown in May highlighted blenders’ focus on maintaining lower stocks at a time when the country’s lube demand continued to slide, even if more slowly than in the first four months of the year.The slump in base oils imports similarly highlighted blenders' moves to secure more supplies from domestic sources.The strategy enabled buyers to procure smaller volumes more frequently and with a faster delivery time.The moves to maintain lower inventories and to replenish stocks with local supplies was likely to continue while lube demand continued to slide.A rise in blenders’ lube stocks in May was likely to curb further any urgency to procure additional base oils supplies as they first worked down those higher inventories.Even so, any moves to hold off procuring more overseas shipments until there were clearer signs of a recovery in consumption could leave supply lagging demand until the overseas cargoes arrived.Argentina’s lower demand for overseas base oils shipments in the first quarter of the year compounded pressure on US refiners seeking to clear a large volume of surplus supplies at the time.Lower demand for overseas base oils supplies in the second quarter and over the coming months would likely have a more muted impact.The lower demand this time coincided with tighter US base oils supply and firm demand in other markets like Brazil..Argentina’s May lube demand falls more slowly.Brazil’s May lube demand extends rise.US April base oils supply edges down