US’ May base oil exports to Latam rise

US base oil exports to Latin America rose in May from the previous month, sustaining steady flows amid firmer consumption in the region.

Exports to Latin America, excluding Mexico, recovered to 505,560bl in May, government data showed.

The volume rose from 394,890bl the previous month and from average levels of close to 475,000 bl/month over the past year.

Total exports of 2.34mn bl to the region in the first five months of the year were similar to year-earlier levels of 2.38mn bl.

Base oil export volumes held firm even as the pace of economic growth in Latin America has slowed compared with the same time last year and as base oils output rose in Brazil and Argentina.

Some buyers have also sought lower-priced supplies from alternative sources such as Asia-Pacific.

But lube consumption has also begun to revive in several markets in the region, boosting demand for premium-grade base oils.

Base oil exports to the region rose in May even as US shipments to Europe surged that month to a record high.

The simultaneous rise in shipments to both regions reflected the sustained pick-up in total US base oil exports in recent months.

The rise in shipments to Argentina was especially large. Exports of 37,000bl to the country rose from less than 2,500bl in each of the first four months of the year to the highest since last September.