Peru’s May base oil/lube imports fall

Peru’s base oils and lube imports fell in May to a six-month low, pausing after a recent surge in shipments.

Imports of 5,340 kilolitres (4,730t) in May fell more than threefold from 18,470kl the previous month, provisional customs data showed.

The volume was down from typical levels of close to 10,000 kl/month over the past year.

The slowdown followed a surge in imports of close to 31,000kl during the previous two months combined.

The volumes during those two months were higher than usual following the arrival of a swathe of shipments from the US.

The supplies replenished buyers’ inventories and pushed back any immediate need to procure additional volumes.

Rising prices and tighter overseas supply since March added to a preference to tap existing stocks for now.

Expectations of slower economic growth added to a reluctance to buy.

The country’s central bank raised interest rates again in early July to its highest in more than a decade in a bid to tame inflation at a 25-year high.

Automobile sales rose in June for a 16^th month. But the pace of the increase slowed sharply compared with recent months.

Base oils accounted for some 65pc of total base oil and lube imports in May. The share was down from typical levels of more than 80pc during the previous five months.

Lube supplies face less exposure than base oil supplies to slower consumer demand in view of the shorter time frame to sell the supplies in the end-user market.