Peru’s base oils and lube imports rose to an eight-month high in February on the back of a surge in shipments from the US.A pick-up in arbitrage supplies from South Korea added to the volume.Imports of close to 11,000 kilolitres (9,550t) of base oils and lubricants in February rose from less than 6,000kl the previous month, provisional customs data showed..The volume was the highest since last June.Imports of close to 16,500kl in the first two months of the year were similar to year-earlier levels, even as the country’s economic growth slowed sharply.Supplies from the US accounted for more than 85pc of the country’s base oils imports.Weaker-than-usual domestic base oils demand in the US during the first few months of this year increased the importance of Latin America as an outlet to clear some of the country’s surplus volumes.Those volumes had to be priced at competitive levels to close the arbitrage from Asia-Pacific.A wave of shipments from Asia-Pacific had moved to Latin American markets like Peru in second-half 2022. The shipments curbed demand for supplies from the US.Lower US light-grade base oils prices in recent months made less feasible the arbitrage to move Group II light-neutrals base oils from Asia-Pacific to Latin America.But the discount of fob Asia heavy-grade prices to US prices remained wide.The wide price spread and persistent surplus availability of heavy grades in Asia-Pacific continued to attract interest in tapping that arbitrage opportunity.Peru’s imports from South Korea in February were the highest in four months. The volume consisted mostly of Group I and Group II heavy-grade base oils..US’ Jan base oils exports to Latam rise
Peru’s base oils and lube imports rose to an eight-month high in February on the back of a surge in shipments from the US.A pick-up in arbitrage supplies from South Korea added to the volume.Imports of close to 11,000 kilolitres (9,550t) of base oils and lubricants in February rose from less than 6,000kl the previous month, provisional customs data showed..The volume was the highest since last June.Imports of close to 16,500kl in the first two months of the year were similar to year-earlier levels, even as the country’s economic growth slowed sharply.Supplies from the US accounted for more than 85pc of the country’s base oils imports.Weaker-than-usual domestic base oils demand in the US during the first few months of this year increased the importance of Latin America as an outlet to clear some of the country’s surplus volumes.Those volumes had to be priced at competitive levels to close the arbitrage from Asia-Pacific.A wave of shipments from Asia-Pacific had moved to Latin American markets like Peru in second-half 2022. The shipments curbed demand for supplies from the US.Lower US light-grade base oils prices in recent months made less feasible the arbitrage to move Group II light-neutrals base oils from Asia-Pacific to Latin America.But the discount of fob Asia heavy-grade prices to US prices remained wide.The wide price spread and persistent surplus availability of heavy grades in Asia-Pacific continued to attract interest in tapping that arbitrage opportunity.Peru’s imports from South Korea in February were the highest in four months. The volume consisted mostly of Group I and Group II heavy-grade base oils..US’ Jan base oils exports to Latam rise
