Brazil’s base oils supply held firm in November even as it dipped from the previous month as still-high import volumes countered low domestic production.Imports were likely to dip over the following months as an expected recovery in domestic base oils output covered more of the country’s requirements.Base oils output of around 32,000mᶟ (28,500t) in November rose from a three-year low of 22,500mᶟ the previous month, government data showed.Output increased from the previous month for the first time in five months.The volume was still lower than typical levels of close to 50,000 mᶟ/month in first-half 2023. Output then fell from August because of a prolonged round of plant maintenance work.A surge in base oils imports more than covered for the drop in domestic production.Imports held firm at 85,000mᶟ in November even as they fell from a thirty-one month high in October.They still rose by 26pc and for the fourth time in five months from year-earlier levels.They also remained well above levels of closer to 65,000 mᶟ/month in first-half 2023.Imports are likely to revert closer to those levels over the coming months as Brazil’s domestic base oils production returns to normal.The US would be the most impacted by any such trend. The country is the source of most of Brazil’s overseas supplies.Brazil’s total supply, or domestic production and imports combined, came to 117,000mᶟ in November.The volume fell from a one-year high of 150,000mᶟ in October but held close to typical levels over the past year..US' October exports to Latam hold firm
