Brazil’s base oils supply stayed higher than usual in May for a second month, boosted by the arrival of a swathe of cargoes from the US.Firm supply contrasted with a sustained dip in the country’s lube demand, raising the prospect of a build-up of surplus supplies.An infrequent shipment of naphthenic base oils to India in May helped to avoid such a scenario that month.Such shipments may need to take place more frequently to sustain balanced supply-demand fundamentals over the coming months if demand stays weak and output steady.Brazil’s base oils supply, or domestic output and imports combined, held above 140,000 cubic meters (125,000 tonnes) in May for a second month, government data showed..The volume was up from typical levels of around 125,000 cubic meters/month over the past year.Supply got a boost from steady domestic output, combined with unusually high import volumes in May for a second month.The shipments included the largest volume of supplies from the US in six months and the arrival of a large cargo from South Korea.The flow of shipments reaching Brazil from the US in June showed signs of staying higher than usual even as they slipped from the May levels.The rise in supply contrasted with weaker domestic lube consumption that fell in May for a third month from year-earlier levels.The pick-up in base oils exports helped to counter the slowdown in domestic consumption, lifting Brazil’s total demand to a one-year high of 144,000 cubic meters.The country’s supply lagged that volume slightly.But the shortfall followed a surplus of more than 12,000 cubic meters in April and a much larger shortfall of more than 50,000 cubic meters in the first quarter of the year.The recent surge in imports helped to balance out that earlier shortfall.Any further wave of imports over the coming months, combined with slowing demand, instead raised the risk of a larger build-up of surplus volumes..Brazil’s May lube demand extends fall.Latin America’s April lube demand falls.Brazil's April base oil supply exceeds demand
