Brazil’s Aug base oil supply surplus rises

Brazil’s surplus of base oils supply over demand rose to a ten-month high in August, adding to a build-up of stocks during a round of plant maintenance work.

The country’s base oils supply, or domestic production and imports combined, rose to more than 141,500mᶟ (125,400t) in August, government data showed.

The volume rose from 131,000mᶟ the previous month to the highest since October 2022.

Brazil’s demand, or consumption and base oils exports combined, rose to close to 113,000mᶟ in August, from 103,000mᶟ the previous month.

The volume was the highest in five months.

The surplus of supply over demand in August widened in response to a ten-month high of close to 29,000mᶟ.

The surplus had already been unusually high at close to 28,000mᶟ in June and in July.

The combined surplus of more than 84,000mᶟ in the three months to August were up from around 41,000mᶟ in the first five months of the year.