US base oils exports to Brazil rose to a six-month high in June, easing the Latin American country’s tight supply balance in the face of persistently strong domestic demand.Brazil’s tight supply, and its growing reliance on base oils imports, left the country more exposed to any weather-related disruptions to shipments from the US during the third quarter of the year.The US is the largest source of Brazil’s base oils imports.US base oils exports of 341,900 barrels (48,000 tonnes) to the country rose from 235,600 barrels the previous month to the highest since December, government data showed.A surge in US base oils exports to Brazil in second-half 2023 coincided with and helped to cover a heavy round of plant maintenance work in the country during that period.US exports to the country slowed this year following the completion of the maintenance work.But rising demand left Brazil’s supply increasingly tight even with the recovery in domestic base oils output.US base oils exports to the country showed signs of holding firm so far in the third quarter of the year.The rise in US base oils exports to Brazil in June contrasted with a slowdown in shipments to the rest of South America and to Mexico.US base oils exports of 456,000 barrels to Mexico in June were the lowest in five months.The slowdown contrasted with a rise in US exports of automotive and marine engine oils to the country to a three-month high.The move lifted engine oil shipments as a share of the US’ total base oils and engine oil exports to Mexico to close to 70% of the total.The share held at or above 50% of the total every month over the past year. It had mostly held below 25% of the total in the previous year to May 2023.The rising share contrasted with a much smaller and steadier share of US engine oil exports to Brazil as a share of total US exports to that market.The diverging dynamic pointed to steadier base oils flows to Brazil for consumption as a feedstock for lubricants production.The ongoing surge in shipments to Mexico suggested that a large portion of the base oils and lubricants continued to be consumed for other purposes..US’ June base oils/lube exports rise.Brazil’s June lube demand extends rise
