Brazil’s base oils supply rose in January to the highest in almost three years on the back of a simultaneous rise in domestic output and imports.The surge in supply raised the prospect of a build-up of surplus volumes and of cutting the country’s demand for shipments from overseas markets.Any such slowdown would have the largest impact on the US, whose base oils exports to Brazil surged in second-half 2023.Any slowdown would compound the persistent surplus availability in the US market and its need to maintain high exports to clear the surplus.Brazil’s supply rose as domestic output rebounded to more than 64,000mᶟ (57,000t) in January, government data showed.The volume rose from 43,000mᶟ in December to the highest since mid-2016.Output rose on the back of a rebound in production at Petrobras’ Group I plant at its Reduc refinery.The unit’s output had fallen sharply during the second half of last year because of scheduled plant maintenance work.Brazil’s base oils imports surged during that same period, more than covering for the drop in output.Base oils imports then extended their rise in January.Imports of close to 123,000mᶟ in January rose from an already-high volume of more than 95,000mᶟ in December to the second-highest level since early 2021.Brazil’s total base oils supply, or output and imports combined, duly rose to more than 187,000mᶟ in January.The volume rose from typical levels of 120,000 mᶟ/month in 2023 to the highest since March 2021..Brazil’s January lube demand rises.US’ Dec base oils/lube supply rises
Brazil’s base oils supply rose in January to the highest in almost three years on the back of a simultaneous rise in domestic output and imports.The surge in supply raised the prospect of a build-up of surplus volumes and of cutting the country’s demand for shipments from overseas markets.Any such slowdown would have the largest impact on the US, whose base oils exports to Brazil surged in second-half 2023.Any slowdown would compound the persistent surplus availability in the US market and its need to maintain high exports to clear the surplus.Brazil’s supply rose as domestic output rebounded to more than 64,000mᶟ (57,000t) in January, government data showed.The volume rose from 43,000mᶟ in December to the highest since mid-2016.Output rose on the back of a rebound in production at Petrobras’ Group I plant at its Reduc refinery.The unit’s output had fallen sharply during the second half of last year because of scheduled plant maintenance work.Brazil’s base oils imports surged during that same period, more than covering for the drop in output.Base oils imports then extended their rise in January.Imports of close to 123,000mᶟ in January rose from an already-high volume of more than 95,000mᶟ in December to the second-highest level since early 2021.Brazil’s total base oils supply, or output and imports combined, duly rose to more than 187,000mᶟ in January.The volume rose from typical levels of 120,000 mᶟ/month in 2023 to the highest since March 2021..Brazil’s January lube demand rises.US’ Dec base oils/lube supply rises