US base oils and engine oils exports to South America edged up to a six-month high in April, extending a sharp pick-up in shipments to the region.The rebound in exports for a second month helped to replenish blenders’ stocks that had faced pressure from a dip in supply in the four months to February.Weaker lube demand in South America raised the prospect of leaving those stocks lasting longer and incentivizing blenders to keep lower inventories.The dynamic could curb the prospect of an extension of that rise in US exports.Total US base oils and engine oils exports of 826,000 barrels (116,000 tonnes) to South America in April edged up from close to 819,000 barrels the previous month, government data showed. .The volume was the second-highest since January 2024 and contrasted with unusually low shipments that averaged 520,000 barrels/month in the three months to February.The slump in shipments early this year compounded regional blenders’ tightening stocks.The drop in shipments also contrasted with higher US base oils and lube exports early this year, when domestic demand faced a seasonal slowdown during the winter months.A wave of surplus US volumes at that time instead moved to outlets like India and West Africa rather than to South America.The rebound in US exports to South America in March and April by contrast coincided with a dip in total US exports to a nine-month low in April.Total exports fell because of plant-maintenance work and a seasonal pick-up in demand in the US at the start of the second quarter.The dip in US exports to South America early this year followed by the rise in shipments from March mirrored seasonal demand trends in that region.The trend helped to avoid a build-up of surplus supplies in South America earlier this year.Such a move, and the rise in US supplies to other markets instead, also curbed pressure on prices in South America.The move suggested that a larger share of shipments to South America consisted of term volumes, while more of the exports bound for markets like West Africa consisted of spot supplies.It also highlighted the greater importance of the South America market for US suppliers compared with those other outlets..US’ April base oils/lube exports fall.Brazil’s April lube demand falls.Argentina’s April base oils/lube demand mixed.US March base oils stocks extend fall
