US base oils and lube exports fell to an eleven-month low in June after the country’s stocks slid to a multi-year low the previous month.Total US base oils and lube exports came to more than 3.40 million barrels (481,000 tonnes) in June, government data showed..The volume fell from 3.75 million barrels the previous month and for the third time in four months from year-earlier levels.The slowdown in shipments from the US in recent months coincided with a heavy round of plant-maintenance work and seasonal rise in domestic demand. Tighter supply typically prompts refiners to prioritise shipments for term buyers in domestic and overseas markets.The tighter availability also curbs the need to line up buyers for surplus spot shipments.A rise in shipments to markets like Mexico and India in June instead pointed to a pick-up in availability of spot shipments despite the tighter supply.The dynamic pointed to weaker demand rather than tighter supply as a major factor behind a drop in shipments to key overseas markets for term buyers in June..The rise in spot shipments for export also pointed to demand in the domestic market that was insufficient to absorb the surplus volumes.Weak demand and rising surplus supply, even so soon after a round of plant-maintenance, raised the prospect of exports needing to stay at elevated levels to avoid a large supply-build during the summer.A drop in US base oils export prices in July facilitated the flow of such shipments to overseas markets.The fall in prices mirrored a typical trend of lower US base oils export prices in the third quarter of the year to help clear surplus volumes.The fall in export prices in the third quarter of this year was earlier than usual.It added to signs of weak domestic demand that already triggered a rise in spot shipments to overseas markets in the month of June..S Korea’s June base oils exports rise.Taiwan’s June base oils exports hold firm.Saudi Arabia’s June Yanbu/Jeddah base oils exports rise.Argentina’s June base oils exports rise.Base Oil News stories and analysis also available on ICIS platform
