US base oils exports to South America fell in December to their lowest in almost three years, curbing any build-up of surplus supplies in the region at year-end.The slump in exports to South America contrasted with a surge in shipments to Mexico.The moves pointed to the removal of surplus supplies from the US in a way that had a more muted impact on other markets such as South America.The drop in shipments to the region cut the size of any supply-build and raised the prospect of an earlier pick-up in demand this year.The US would be the key overseas source of supplies for that pick-up in demand.Total US base oils exports of 258,000 barrels (36,300 tonnes) to South America in December fell from more than 490,000 barrels the previous month, government data showed.The volume was the lowest since January 2022. The drop in shipments cut total US exports to the region to less than 1.40 million barrels in the fourth quarter of the year, down 23% from more than 1.80 million barrels during the same period a year earlier.The rise in US shipments at end-2023 contrasted with a seasonal slowdown in demand in South America at year-end. The disconnect between supply and demand triggered a surge in surplus volumes early last year.The drop in shipments at the end of last year coincided with a similar seasonal slowdown in demand. The drop in supply duly cushioned the impact of lower demand.Base oils exports to Brazil fell to a two-year low of 146,400 barrels in December, down from typical levels of around 270,0000 barrels/month.Brazil’s base oils supply already lagged demand in December for the second time in three months.Exports of less than 11,000 barrels to Argentina in December fell from more than 60,000 barrels during each of the previous two months.The drop in shipments coincided with a jump in base oils exports from Argentina from late last year. The diverging trends squeezed surplus supply in that market..US' Dec base oils exports stay lower.US’ December base oils imports fall.Brazil’s Dec base oil supply lags demand.Argentina's December lube demand falls more slowly.Base Oil News stories and analyses also available on the ICIS platform
