US base oils exports to Mexico fell for a tenth month in December, slashing supply to levels that lagged the Latin American country’s monthly lube output.The fall in base oil feedstock supplies contrasted with Mexico’s still-rising lubricants consumption..Mexico's November lube output rises.The growing gap between base oils supply and lube demand raised the prospect of Mexican blenders turning to other markets like Asia-Pacific for supplies, or of cutting production.The US typically supplies almost all of Mexico’s base oils requirements.Its base oils exports of less than 305,000bl (42,910t) to Mexico in December fell from 413,280bl the previous month to the lowest since May 2020, government data showed..Exports fell at that time as lockdowns throughout the Americas slashed economic activity and demand for products like motor fuels and lubricating oils.The fall in exports for the eleventh time in twelve months cut total shipments to Mexico to 5.22mn bl in 2022. The volume fell by 13pc from more than 6mn bl in 2021 to the lowest in four years.The inclusion of a large volume of very-light grade base oils had boosted the US' Mexico-bound exports in recent years.The volume of light-grade base oils exports dwindled last year as high US diesel prices incentivized refiners to pour the supplies back into the diesel pool instead.The loss of the supplies had limited impact on Mexico’s lubricant blenders in view of one of their key uses as a fuel-extender.The drop in supplies of other base oils grades for finished lubricants production had a larger impact.Mexico’s lube output needed to fall by around 15pc in December from year-earlier levels to avoid lube production exceeding base oils supply.Such a scenario was unlikely after the country's lube output rose in each of the first eleven months of the year..Americas November lube demand rises
