US’ March base oil exports rebound

US base oil exports rebounded in March to their highest in at least a decade, at a time when refiners were starting to focus on producing more diesel in response to surging prices and tight supplies of the motor fuel.

Base oil exports of 2.34mn bl in March rose by 49pc from 1.57mn bl the previous month, government data showed. The volume was up 24pc from year-earlier levels and the highest since at least 2012.

The surge in exports partly reflected the clear-out of the remaining surplus volumes from the end of 2021 and early this year. The shipments were likely lined up in January or February, before crude and diesel prices surged from the second half of that month.

Exports are unlikely to repeat that surge anytime soon as refiners raised their prices and sought to manage their supplies increasingly carefully.

Shipments also got a boost from a pick-up in exports from several regions in the US where supplies had slumped in recent months.

Exports have typically fallen sharply like that when plant maintenance has been taking place. Shipment volumes have then typically rebounded like they did in March following the completion of the maintenance work.