Brazil’s base oils supply rebounded in December as a surge in imports added to an ongoing recovery in domestic production.Rising supply contrasted with a drop in demand as the country’s lube consumption fell for the first time in eight months.Brazil’s surplus of supply over demand surged in response to a fourteen-month high.The growing supply surplus raised the prospect of curbing Brazil’s requirements for base oils supplies from overseas markets.Any such slowdown in requirements could be more prolonged as domestic base oils output extends its revival and demand weakens.A slowdown in demand for overseas base oils supplies would have the largest impact on the US. The country moved unusually large volumes to Brazil during second-half 2023.The shipments helped to limit a supply-build in the US at a time when domestic demand was unusually weak.A drop in Brazil’s requirements would force US refiners to move more supplies to other markets instead if domestic demand fails to revive.Brazil’s base oils output of 43,000 cubic meters (38,100 tonnes) in December rose from less than 32,500mᶟ the previous month and from a 40-month low of less than 23,000mᶟ in October.Output fell earlier in the fourth quarter because of plant maintenance work.The country’s imports stayed unusually high at more than 95,000mᶟ in December even with the recovery in domestic output.Total supply, or domestic output and imports combined, rose to almost 139,000mᶟ in response, up from around 117,000mᶟ in November.The rise in supply contrasted with a drop in demand to close to 91,000mᶟ in December.The volume fell from more than 100,000mᶟ in November to an eight-month low.The surplus of supply over demand rose in response to more than 47,500mᶟ in December and to more than 104,000mᶟ in the fourth quarter of the year.The quarterly volume rose from around 33,000mᶟ during the third quarter to the highest in a year.A drop in imports and firmer demand early last year helped to reverse a similar supply-build at end-2022..Brazil’s December lube demand falls
Brazil’s base oils supply rebounded in December as a surge in imports added to an ongoing recovery in domestic production.Rising supply contrasted with a drop in demand as the country’s lube consumption fell for the first time in eight months.Brazil’s surplus of supply over demand surged in response to a fourteen-month high.The growing supply surplus raised the prospect of curbing Brazil’s requirements for base oils supplies from overseas markets.Any such slowdown in requirements could be more prolonged as domestic base oils output extends its revival and demand weakens.A slowdown in demand for overseas base oils supplies would have the largest impact on the US. The country moved unusually large volumes to Brazil during second-half 2023.The shipments helped to limit a supply-build in the US at a time when domestic demand was unusually weak.A drop in Brazil’s requirements would force US refiners to move more supplies to other markets instead if domestic demand fails to revive.Brazil’s base oils output of 43,000 cubic meters (38,100 tonnes) in December rose from less than 32,500mᶟ the previous month and from a 40-month low of less than 23,000mᶟ in October.Output fell earlier in the fourth quarter because of plant maintenance work.The country’s imports stayed unusually high at more than 95,000mᶟ in December even with the recovery in domestic output.Total supply, or domestic output and imports combined, rose to almost 139,000mᶟ in response, up from around 117,000mᶟ in November.The rise in supply contrasted with a drop in demand to close to 91,000mᶟ in December.The volume fell from more than 100,000mᶟ in November to an eight-month low.The surplus of supply over demand rose in response to more than 47,500mᶟ in December and to more than 104,000mᶟ in the fourth quarter of the year.The quarterly volume rose from around 33,000mᶟ during the third quarter to the highest in a year.A drop in imports and firmer demand early last year helped to reverse a similar supply-build at end-2022..Brazil’s December lube demand falls