US’ September base oils imports surge

US base oils imports rose in September to the second highest on record amid a surge in shipments from Qatar.

The rise in shipments coincided with firm Group III base oils prices in the US, especially compared with other regions like Europe.

The growing premium of US prices compared with other regions boosted the attraction of moving more supplies to the US.

Base oils imports of 1.90mn bl (266,900t) in September rose from 1.29mn bl the previous month, government data showed.

The volume was the highest in 13 months and second highest ever.

Some 90pc of the shipments originated from sources that are key producers of Group III base oils.

The US is almost wholly reliant on overseas supplies to cover its Group III base oils requirements.

Demand for the product has continued to rise this year. It would likely have risen even more strongly but for a shortage of additives.

Increasingly stringent engine oil specifications have boosted global demand for Group III base oils that can meet the specification requirements.

US refiners cut most of their base oils posted prices in September for the first time this year in response to weaker supply-demand fundamentals.

They kept steady their Group III prices, reflecting the still-firm fundamentals for that product.

Imports in September got a boost from a surge in shipments from Qatar to 629,690bl. The record-high volume was up from more typical levels of around 300,000 bl/month.

US imports of 125,570bl from Bahrain in September were the highest in seven months.

Imports of 466,290bl from South Korea in September were the highest in 10 months and up from more typical levels of around 365,000 bl/month.

The rise in shipments from South Korea coincided with a slowdown in its exports to Europe and China, where prices were lower and lube demand slower.