Global base oils supply falls in May

Global base oils supply fell to a three-month low in May as plant-maintenance work in Europe and Asia countered a recovery in output in the Americas.

Total supply of around 2.05mn t in May fell from 2.11mn t the previous month and by 2pc from year-earlier levels.

The volume was derived by combining supplies in the Americas, Europe and Asia-Pacific. It excluded China and Group III producers in the Mideast Gulf.

Including those markets, supply edged up to more than 2.75mn t in May, from less than 2.70mn t the previous month.

Total supply of around 13.20mn t in the first five months of the year was down 3pc from more than 13.50mn t during the same period a year earlier.

Supply fell mostly because of a sustained fall in output in the Americas market over the past year.

Global base oils prices rose relative to crude and diesel in the three months to May, at a time of year when lube demand typically gets a seasonal boost and supply falls because of maintenance work.