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Brazil's May base oils imports fell from a 19-month high in April but remained above average levels despite recovering domestic production
Group III imports from the Middle East weakened further, with shipments from Qatar and the UAE pausing for the first time in 15 and eight months respectively
Steady US exports and rising flows from India reinforced signs that supply of other grades remained more resilient than expected
Brazil's May base oils imports fell from a 19-month high in April, but supply remained above normal levels as recovering domestic production coincided with still-elevated overseas shipments.
Imports fell to 62,500 tonnes in May from close to 84,000 tonnes in April, MDIC data showed. The volume remained above average monthly imports of around 56,000 tonnes during 2025.
The moderation followed a surge in imports during the first four months of the year that helped offset lower domestic output and stronger demand.
Imports remained elevated in May even after domestic production recovered, pointing to supply that stayed firmer than expected even during a period when disruptions were expected to tighten availability.
The resilience added to signs from Asia and North America that availability of most base oils grades remained sufficient despite Middle East disruptions, refinery pressure to maximise fuels production and earlier concerns of widespread shortages.
Key Highlights
· Imports from the US remained well above 2025 monthly levels even as they fell from April.
· Shipments from Qatar paused for the first time in 15 months, while imports from the UAE halted for the first time in eight months.
· Imports from India rose to their highest level in 30 months, while an infrequent cargo from Turkey added to supplies.
Market Repercussions
Firm US export volumes to Brazil in May raised the prospect of the country remaining well supplied through the second quarter.
Higher imports from India added to May’s supply and preceded a pick-up in flows from that market to Singapore in June.
The shipments from a major importer of base oils pointed to a shift in global trade flows and followed a sustained rise in India’s domestic production since late 2025.
While supply remained sufficient, expectations of easing disruption alongside weaker crude oil prices could deter further stock-building and trim procurement requirements.
Group III availability pointed to continued tightness even with broader easing of other grades.
The drop in shipments from Qatar and the UAE mirrored trends seen across major import markets, adding to a growing divide between adequate availability of most grades and deepening tightness of premium-grade Group III base oils.
