US domestic and overseas base oils and lube demand exceeded supply in January by the largest amount in five months as lower prices boosted buying interest.Domestic and overseas demand of 4.96mn bl (698,000t) in December had lagged total supply by 1.36mn bl. The shortfall was the largest in more than seven years.US base oils and lube stocks duly surged in response to a two-year high.Demand then rose in January to a three-month high of 6.41mn bl amid rebounding exports especially..The higher demand exceeded supply by 305,000bl. The volume was the largest in five months and helped to partially reverse the country’s high stocks.Domestic and overseas demand got a lift from lower prices that revived domestic buying interest and boosted the competitiveness of supplies in overseas markets.Higher US prices relative to prices in other markets like Asia-Pacific had attracted a swathe of arbitrage shipments to outlets like Brazil throughout the second half of last year.Plant maintenance work in the US likely curbed base oils output in February and March. But supply was expected to rise in April following the completion of the maintenance work.The trend would increase the importance of a rise in demand that matched or ideally exceeded supply.Demand in the US and globally has been more muted than usual so far this year because of blenders’ preference to maintain lower stocks.The dynamic highlighted the importance of competitive prices to spur domestic demand, to facilitate exports and to deter arbitrage shipments from moving to the Americas region..US’ Jan base oils/lube demand rises
US domestic and overseas base oils and lube demand exceeded supply in January by the largest amount in five months as lower prices boosted buying interest.Domestic and overseas demand of 4.96mn bl (698,000t) in December had lagged total supply by 1.36mn bl. The shortfall was the largest in more than seven years.US base oils and lube stocks duly surged in response to a two-year high.Demand then rose in January to a three-month high of 6.41mn bl amid rebounding exports especially..The higher demand exceeded supply by 305,000bl. The volume was the largest in five months and helped to partially reverse the country’s high stocks.Domestic and overseas demand got a lift from lower prices that revived domestic buying interest and boosted the competitiveness of supplies in overseas markets.Higher US prices relative to prices in other markets like Asia-Pacific had attracted a swathe of arbitrage shipments to outlets like Brazil throughout the second half of last year.Plant maintenance work in the US likely curbed base oils output in February and March. But supply was expected to rise in April following the completion of the maintenance work.The trend would increase the importance of a rise in demand that matched or ideally exceeded supply.Demand in the US and globally has been more muted than usual so far this year because of blenders’ preference to maintain lower stocks.The dynamic highlighted the importance of competitive prices to spur domestic demand, to facilitate exports and to deter arbitrage shipments from moving to the Americas region..US’ Jan base oils/lube demand rises
