US’ February base oil exports fall

US base oil exports fell in February to a three-month low, adding to a global slowdown in shipments to overseas markets.

Total base oil exports of 1.57mn bl in February fell by 15pc from 1.84mn bl the previous month, government data showed. Exports had averaged around 1.71mn bl/month over the previous year.

A large portion of the February shipments were likely lined up before that month and before the surge in crude and diesel prices in second-half February.

The shipments included surplus volumes from last year that had yet to be moved to overseas markets.

The subsequent surge in crude and diesel prices from late February, and the removal of most of the lingering surplus supplies, raised the prospect of additional pressure on export flows from the US.

The drop in supplies has coincided with lower-than-usual base oil exports from Asia-Pacific in the first two months of the year.

Surplus export supplies from Europe are also increasingly tight because of plant maintenance work and the gradual drop in supplies of Russian origin.