Brazil’s base oils supply fell close to its lowest in more than a year in October as a drop in imports outweighed an unusual surge in the country’s domestic output.The subsequent shortfall contrasted with and helped to partially reverse a large supply-build the previous month, leaving market fundamentals relatively balanced heading into year-end.An extension of that scenario, and the lack of any substantial surplus to clear, would likely trigger an earlier recovery in Brazil’s requirements for base oils supplies from overseas markets.The US would be the main beneficiary of any such pick-up in demand.Brazil’s base oils output of 62,450 cubic meters (55,000 tonnes) in October rose from less than 49,000 cubic meters in each of the previous two months, government data showed.The volume was the highest since January.Before 2024, output exceeded the 60,000 cubic meters/month level just three times during the previous four years.The surge in output in October contrasted with a slump in Brazil’s base oils production during the same month a year earlier because of a heavy round of plant maintenance at that time.The country’s base oils imports rose to a multi-year-high in October 2023, more than covering for the drop in production and triggering a build-up of surplus supplies.Brazil’s base oils imports by contrast fell to a multi-year low in October this year, customs data showed. The drop in shipments exceeded the size of the rise in domestic output.A pick-up in base oils exports, including a rare shipment to the Middle East, cut supply further.Brazil’s total supply, or output and imports combined, duly fell to less than 115,000 cubic meters in October, from 165,000 cubic meters the previous month.The volume was the lowest since June and second-lowest in more than a year.The volume also lagged demand, or domestic consumption and exports combined, of more than 130,000 cubic meters in October.It was the second such shortfall in the last three months. .Brazil’s Oct lube demand holds steady.Argentina’s October lube demand falls
Brazil’s base oils supply fell close to its lowest in more than a year in October as a drop in imports outweighed an unusual surge in the country’s domestic output.The subsequent shortfall contrasted with and helped to partially reverse a large supply-build the previous month, leaving market fundamentals relatively balanced heading into year-end.An extension of that scenario, and the lack of any substantial surplus to clear, would likely trigger an earlier recovery in Brazil’s requirements for base oils supplies from overseas markets.The US would be the main beneficiary of any such pick-up in demand.Brazil’s base oils output of 62,450 cubic meters (55,000 tonnes) in October rose from less than 49,000 cubic meters in each of the previous two months, government data showed.The volume was the highest since January.Before 2024, output exceeded the 60,000 cubic meters/month level just three times during the previous four years.The surge in output in October contrasted with a slump in Brazil’s base oils production during the same month a year earlier because of a heavy round of plant maintenance at that time.The country’s base oils imports rose to a multi-year-high in October 2023, more than covering for the drop in production and triggering a build-up of surplus supplies.Brazil’s base oils imports by contrast fell to a multi-year low in October this year, customs data showed. The drop in shipments exceeded the size of the rise in domestic output.A pick-up in base oils exports, including a rare shipment to the Middle East, cut supply further.Brazil’s total supply, or output and imports combined, duly fell to less than 115,000 cubic meters in October, from 165,000 cubic meters the previous month.The volume was the lowest since June and second-lowest in more than a year.The volume also lagged demand, or domestic consumption and exports combined, of more than 130,000 cubic meters in October.It was the second such shortfall in the last three months. .Brazil’s Oct lube demand holds steady.Argentina’s October lube demand falls
