US base oils exports rose to the third-highest on record in November, clearing a swathe of supplies from the domestic market at a time of year when demand faced a seasonal slowdown.The wave of shipments contrasted with end-2022 when exports fell in the fourth quarter and domestic stocks surged.US base oils prices then faced sustained downward pressure in early 2023 as producers moved to clear the surplus volumes in overseas markets like India.The surge in exports in November raised the prospect of dampening the size of any rise in the country’s stocks at the end of the year.Total base oils exports of 2.47mn bl (348,500t) in November surged from 1.66mn bl the previous month and by 66pc from year-earlier levels, government data showed.The rise in shipments lifted total exports of 9.85mn bl in the five months to November, up 27pc from 7.76mn bl during the same period the previous year.Base oils exports of 485,600bl to Mexico in November were similar to the previous month but down from average volumes of more than 730,000 bl/month in the first nine months of the year.The drop in shipments coincided with Mexico’s implementation of stricter rules on oil product imports, including base oils, from second-half October.The fall in exports to Mexico increased pressure on US refiners to redirect shipments to other markets or to cut production.Any further drop in exports is likely to be more muted after the surplus of US shipments versus Mexico’s domestic lube consumption narrowed sharply in October and November..US’ October base oils exports fall
US base oils exports rose to the third-highest on record in November, clearing a swathe of supplies from the domestic market at a time of year when demand faced a seasonal slowdown.The wave of shipments contrasted with end-2022 when exports fell in the fourth quarter and domestic stocks surged.US base oils prices then faced sustained downward pressure in early 2023 as producers moved to clear the surplus volumes in overseas markets like India.The surge in exports in November raised the prospect of dampening the size of any rise in the country’s stocks at the end of the year.Total base oils exports of 2.47mn bl (348,500t) in November surged from 1.66mn bl the previous month and by 66pc from year-earlier levels, government data showed.The rise in shipments lifted total exports of 9.85mn bl in the five months to November, up 27pc from 7.76mn bl during the same period the previous year.Base oils exports of 485,600bl to Mexico in November were similar to the previous month but down from average volumes of more than 730,000 bl/month in the first nine months of the year.The drop in shipments coincided with Mexico’s implementation of stricter rules on oil product imports, including base oils, from second-half October.The fall in exports to Mexico increased pressure on US refiners to redirect shipments to other markets or to cut production.Any further drop in exports is likely to be more muted after the surplus of US shipments versus Mexico’s domestic lube consumption narrowed sharply in October and November..US’ October base oils exports fall