US base oils exports stayed unusually high in December, balancing out a seasonal slowdown in the country’s domestic demand and curbing the size of a supply-build at year-end.The surge in exports in the last two months of the year contrasted with a slump in shipments and surge in stocks during the same period a year earlier.The trend raised the prospect of leaving US base oils supply more balanced at the start of this year and ahead of any seasonal pick-up in demand in spring-time.The more balanced fundamentals in turn curbed downward pressure on base oils prices.Total base oils exports of 2.35mn bl (331,000t) in December fell from 2.47mn bl the previous month, government data showed.The December volume was the fourth highest on record. The November volume was the third highest. The highest and second-highest volumes had been earlier in 2023.The surge in shipments throughout the year lifted total US base oils exports to 24.67mn bl in 2023, up 23pc from 20.05mn bl the previous year.US base oil exports of 6.49mn bl in the fourth quarter rose even more strongly, by 57pc from 4.13mn bl during the same period a year earlier.The surge in shipments followed a fall in US base oils prices relative to prices in other regions in the fourth quarter that made the arbitrage even more attractive.The competitive prices and open arbitrage contrasted with higher prices that kept shut the arbitrage during the same period in 2022.The rise in shipments throughout 2023 triggered a steady fall in US base oils and lube stocks in the seven months to November.The high export volume in December raised the prospect of extending that trend to year-end.The rise in shipments in December mostly reflected a jump in shipments from the districts of Houston and Port Arthur to more than 900,000bl combined.The volume rose from around 550,000bl in November to the highest in at least five years..US’ Nov base oils/lube demand falls
US base oils exports stayed unusually high in December, balancing out a seasonal slowdown in the country’s domestic demand and curbing the size of a supply-build at year-end.The surge in exports in the last two months of the year contrasted with a slump in shipments and surge in stocks during the same period a year earlier.The trend raised the prospect of leaving US base oils supply more balanced at the start of this year and ahead of any seasonal pick-up in demand in spring-time.The more balanced fundamentals in turn curbed downward pressure on base oils prices.Total base oils exports of 2.35mn bl (331,000t) in December fell from 2.47mn bl the previous month, government data showed.The December volume was the fourth highest on record. The November volume was the third highest. The highest and second-highest volumes had been earlier in 2023.The surge in shipments throughout the year lifted total US base oils exports to 24.67mn bl in 2023, up 23pc from 20.05mn bl the previous year.US base oil exports of 6.49mn bl in the fourth quarter rose even more strongly, by 57pc from 4.13mn bl during the same period a year earlier.The surge in shipments followed a fall in US base oils prices relative to prices in other regions in the fourth quarter that made the arbitrage even more attractive.The competitive prices and open arbitrage contrasted with higher prices that kept shut the arbitrage during the same period in 2022.The rise in shipments throughout 2023 triggered a steady fall in US base oils and lube stocks in the seven months to November.The high export volume in December raised the prospect of extending that trend to year-end.The rise in shipments in December mostly reflected a jump in shipments from the districts of Houston and Port Arthur to more than 900,000bl combined.The volume rose from around 550,000bl in November to the highest in at least five years..US’ Nov base oils/lube demand falls