Brazil’s base oils supply fell back to more typical levels in February as imports slid to a five-month low.The country’s supply continued to outpace demand, with the surplus still higher than usual. But it fell sharply from the previous two months.A return to more typical supply-demand levels raised the prospect of steadier import requirements over the coming months, even if at lower levels than during the second half of last year.The prospect of lower imports compared with that period last year put pressure on US refiners early this year to cut output or to redirect more supplies to other markets instead.Unusually weak US base oil export prices throughout the first quarter of the year suggested that refiners focused more on redirecting surplus supplies rather than cutting output. Brazil’s base oil imports are likely to remain lower as a rebound in the country’s base oils production covers more of the country’s requirements.Output of more than 56,000 cubic meters (cbm) (49,700 tonnes) in February fell from around 64,400 cbm the previous month, government data showed.It was still the second highest in thirteen months and up from average levels of less than 36,000 cbm/month during second-half 2023.Output fell during that period because of an extensive round of plant maintenance work.Imports duly fell to less than 68,000 cbm in February, down from average volumes of more than 95,000 cbm/month during the seven months to January.Lower imports cut Brazil’s total supply, or domestic output and imports combined, to 124,000 cbm in February, down from close to 190,000 cbm the previous month.The surplus of supply over demand duly fell to less than 26,000 cbm, from more than 80,000 cbm in January.The January surplus was the highest since the beginning of 2021. The February surplus remained higher than usual. But it was closer to average levels of around 17,000 cbm/month in 2023..Brazil’s Feb lube demand extends rise
Brazil’s base oils supply fell back to more typical levels in February as imports slid to a five-month low.The country’s supply continued to outpace demand, with the surplus still higher than usual. But it fell sharply from the previous two months.A return to more typical supply-demand levels raised the prospect of steadier import requirements over the coming months, even if at lower levels than during the second half of last year.The prospect of lower imports compared with that period last year put pressure on US refiners early this year to cut output or to redirect more supplies to other markets instead.Unusually weak US base oil export prices throughout the first quarter of the year suggested that refiners focused more on redirecting surplus supplies rather than cutting output. Brazil’s base oil imports are likely to remain lower as a rebound in the country’s base oils production covers more of the country’s requirements.Output of more than 56,000 cubic meters (cbm) (49,700 tonnes) in February fell from around 64,400 cbm the previous month, government data showed.It was still the second highest in thirteen months and up from average levels of less than 36,000 cbm/month during second-half 2023.Output fell during that period because of an extensive round of plant maintenance work.Imports duly fell to less than 68,000 cbm in February, down from average volumes of more than 95,000 cbm/month during the seven months to January.Lower imports cut Brazil’s total supply, or domestic output and imports combined, to 124,000 cbm in February, down from close to 190,000 cbm the previous month.The surplus of supply over demand duly fell to less than 26,000 cbm, from more than 80,000 cbm in January.The January surplus was the highest since the beginning of 2021. The February surplus remained higher than usual. But it was closer to average levels of around 17,000 cbm/month in 2023..Brazil’s Feb lube demand extends rise
