US’ February base oil imports rise

US base oil imports rose in February to a six-month high, boosted by the arrival of a wave of shipments of Group III supplies.

Total base oil imports of 1.51mn bl in February rose by 28pc from 1.18mn bl the previous month, government data showed.

Supplies from sources that produce Group III base oils came to 1.32mn bl, or some 88pc of the total volume. The share of Group III supplies is typically around 80-85pc of the total volume.

US Group III base oil prices have held at a substantial premium to prices in other regions. That premium has incentivized overseas producers to target the US with more supplies.

The rise in supplies in February reflected a pick-up in shipments from both South Korea and from the Mideast Gulf.

Imports of 466,000bl from South Korea in February rose from less than 200,000bl the previous month and average levels of around 300,000 bl/month in 2021.

Imports of 581,920bl from the Mideast Gulf in February were the highest in six months. The supplies included an unusual surge in shipments from Bahrain.