US’ May Group III base oil imports rise

US Group III base oil imports rose in May to their second-highest level in the past nine months amid firm demand and a surge in shipments from Mideast Gulf.

Base oil imports of 1.30mn bl (182,780t) in May rose from 1.06mn bl the previous month and by 19pc from year-earlier levels, government data showed.

The rise in shipments lifted total imports to 5.47mn bl in the first five months of the year, up 12pc from year-earlier levels of 4.87mn bl.

The sustained rise in imports reflected strong demand, an improvement in supply availability and firm US prices.

The more plentiful supply partly reflected the light round of Group III plant maintenance work around the world so far this year.

It contrasted with an unusually heavy round of maintenance work in first-half 2021.

US prices have also remained elevated relative to other regions.

Group III prices have also risen less sharply this year than prices for other grades. They had begun the year at a steep premium to those other grades.

The narrower premium boosted the attraction of using Group III in place of other grades.

The rise in US imports in May reflected a surge in shipments from all three sources of premium-grade base oils in the Mideast Gulf market.

Supplies rose to a three-month high from Bahrain and to a four-month high from Qatar. Imports from the UAE rose to the highest in 13 months.