US base oils exports to Mexico fell to a seven-month low in July even as total US shipments surged.Base oils exports of 541,420 (76,300t) in July fell from almost 596,000bl in June and from more than 1mn bl in May, government data showed.A surge in exports to Mexico in the first five months of the year coincided with unusually weak US light-grade base oils export prices relative to diesel prices in early 2023, ICIS data showed.The fall in base oils exports in June and July followed a recovery in US base oils prices versus diesel throughout May.US base oils prices by contrast stayed weak relative to cfr India prices in May and in June.India is an alternative outlet for the US' surplus supplies of light-grade base oils.The price trends cut demand in Mexico for light-grade base oils for use as a fuel-extender.At the same time the price trends sustained firm demand in India for arbitrage cargoes from the US.More US shipments were lined up to move to India during that time.US light-grade export prices reverted to a steep discount to diesel prices in July and especially in August.The trend raised the prospect of reviving Mexico’s demand for US supplies during those months..US’ July base oils exports rise
US base oils exports to Mexico fell to a seven-month low in July even as total US shipments surged.Base oils exports of 541,420 (76,300t) in July fell from almost 596,000bl in June and from more than 1mn bl in May, government data showed.A surge in exports to Mexico in the first five months of the year coincided with unusually weak US light-grade base oils export prices relative to diesel prices in early 2023, ICIS data showed.The fall in base oils exports in June and July followed a recovery in US base oils prices versus diesel throughout May.US base oils prices by contrast stayed weak relative to cfr India prices in May and in June.India is an alternative outlet for the US' surplus supplies of light-grade base oils.The price trends cut demand in Mexico for light-grade base oils for use as a fuel-extender.At the same time the price trends sustained firm demand in India for arbitrage cargoes from the US.More US shipments were lined up to move to India during that time.US light-grade export prices reverted to a steep discount to diesel prices in July and especially in August.The trend raised the prospect of reviving Mexico’s demand for US supplies during those months..US’ July base oils exports rise
