US’ March base oil exports to Latam rise

US base oil exports to Latin America, excluding Mexico, rose in March to their second-highest level since 2017 even as shipments to the region’s largest markets fell.

Total base oil exports of 611,860bl (86,180t) to Latin America rose by 9pc from 562,040bl the previous month, government data showed. The volume was the highest in a year and second highest since July 2017.

The surge in US exports in March mirrored a similar pick-up in flows to other key markets like Europe.

Shipments rose even as surplus supply tightened and US refiners focused on producing more motor fuels.

The supplies reflected more the surplus availability from late last year and early this year that producers had sought to clear in overseas markets.

Brazil and Argentina are the two largest markets in South America. But US base oil exports to Brazil fell by more than half in March from the previous month to less than 160,000bl.

Exports of just 850bl to Argentina in March extended for a third month a sharp slide in shipments to that market.

Exports of 3,650bl to the country in the first three months of the year were down from more than 48,000bl during the fourth quarter of last year.

The slowdown in supplies coincided with a recovery in lube demand in both those markets.

US exports instead surged to other outlets like Chile, Ecuador, and Peru.

Shipments of more than 117,000bl to Chile were the highest in more than six years. Exports of more than 64,000bl to Ecuador were the highest in almost two years.