Brazil’s base oils surplus of supply over demand fell in April to the narrowest in seven months even as supply stayed higher than usual.Demand almost matched the firm supply volumes amid a pick-up in base oils exports and a rebound in domestic lube consumption.An extension of the trend would support firm import requirements even with higher domestic base oils output.Plentiful surplus base oils supplies in the US in second-half 2023 and early this year helped to support higher-than-usual shipments to Brazil during that period.Tighter surplus base oils supply in the US in the second quarter of this year could complicate the sustainability of such high flows over the coming months.The prospect of firmer import requirements from Brazil could also provide US refiners with a valuable outlet for surplus volumes if availability starts to improve over the coming months.Brazil’s base oils supply, or domestic output and imports combined, came to almost 135,000 cubic meters (119,000 tonnes) in April, government data showed.The volume fell from more than 162,000 cubic meters in March but remained up from typical levels of 120,000 cubic meters/month in 2023.Brazil’s demand, or base oils exports and lube consumption combined, rose to close to 121,000 cubic meters in April.The volume rose from 112,000 cubic meters in March to a twenty-five month high.Demand got a boost from a rise in base oils exports to a thirty-month high of more than 17,600 cubic meters in April.Brazil’s base oils exports would need to stay at more elevated levels if the country’s output and imports remain high.Slower demand in markets like India and UAE would complicate the shipment of any surplus supplies to those markets.Tighter base oils supply in Europe and the US could boost demand from regions that are typically regular outlets for arbitrage shipments from those markets.Brazil's firm demand in April cut its shortfall to supply to 14,000 cubic meters. The volume was the lowest since last September..Brazil’s April lube demand rises.US’ March base oils/lube demand rises
Brazil’s base oils surplus of supply over demand fell in April to the narrowest in seven months even as supply stayed higher than usual.Demand almost matched the firm supply volumes amid a pick-up in base oils exports and a rebound in domestic lube consumption.An extension of the trend would support firm import requirements even with higher domestic base oils output.Plentiful surplus base oils supplies in the US in second-half 2023 and early this year helped to support higher-than-usual shipments to Brazil during that period.Tighter surplus base oils supply in the US in the second quarter of this year could complicate the sustainability of such high flows over the coming months.The prospect of firmer import requirements from Brazil could also provide US refiners with a valuable outlet for surplus volumes if availability starts to improve over the coming months.Brazil’s base oils supply, or domestic output and imports combined, came to almost 135,000 cubic meters (119,000 tonnes) in April, government data showed.The volume fell from more than 162,000 cubic meters in March but remained up from typical levels of 120,000 cubic meters/month in 2023.Brazil’s demand, or base oils exports and lube consumption combined, rose to close to 121,000 cubic meters in April.The volume rose from 112,000 cubic meters in March to a twenty-five month high.Demand got a boost from a rise in base oils exports to a thirty-month high of more than 17,600 cubic meters in April.Brazil’s base oils exports would need to stay at more elevated levels if the country’s output and imports remain high.Slower demand in markets like India and UAE would complicate the shipment of any surplus supplies to those markets.Tighter base oils supply in Europe and the US could boost demand from regions that are typically regular outlets for arbitrage shipments from those markets.Brazil's firm demand in April cut its shortfall to supply to 14,000 cubic meters. The volume was the lowest since last September..Brazil’s April lube demand rises.US’ March base oils/lube demand rises