US base oils imports rose in December as shipments from Asia surged to a four-year high.The wave of cargoes from Asia trimmed the volume of surplus supplies in that region at the end of last year and boosted supplies in the US.The US remained the most attractive outlet for the shipments in view of the wide premium of US Group III prices over other regions and especially Europe, ICIS data showed.An ongoing surge in US base oils exports in the fourth quarter cushioned the impact of the pick-up in imports.But the shipment flows raised the prospect of leaving the US market with balanced-to-tighter supplies of Group II base oils at the start of this year and more plentiful availability of Group III supplies.Total US base oils imports of 1.32mn bl (186,000t) in December rose from 1.04mn bl the previous month, government data showed.Most of the supplies consisted of Group III base oils.The country’s imports still fell by 9pc and for an eighth month from year-earlier levels.The drop in supplies cut total shipments to 14.81mn bl in 2023. The volume fell by 9pc from 16.27mn bl the previous year to the lowest since 2020.US imports rose in December as a surge in cargoes from South Korea and Indonesia boosted shipments from Asia to more than 700,000bl.The volume from Asia rose from less than 210,000bl in November and from typical levels of around 400,000 bl/month over the past year.The rise in shipments from Asia outweighed a drop in supplies from the Mideast Gulf to a six-month low of close to 310,000bl.The rise in US base oils imports contrasted with a drop in the country’s base oils exports in December.The surplus of exports over imports narrowed in response to around 1.03mn bl, from more than 1.40mn bl the previous month.The December surplus was still the second highest in seven months and likely cushioned the impact of a seasonal slowdown in domestic demand in the US at year-end.Most of the exports likely consisted of Group II base oils. Most of the imports consisted of Group III base oils.The composition of any supply-build at year-end likely reflected that dynamic. The seasonal slowdown in demand then added to the impact of rising Group III supplies..US’ Dec base oils exports stay high
US base oils imports rose in December as shipments from Asia surged to a four-year high.The wave of cargoes from Asia trimmed the volume of surplus supplies in that region at the end of last year and boosted supplies in the US.The US remained the most attractive outlet for the shipments in view of the wide premium of US Group III prices over other regions and especially Europe, ICIS data showed.An ongoing surge in US base oils exports in the fourth quarter cushioned the impact of the pick-up in imports.But the shipment flows raised the prospect of leaving the US market with balanced-to-tighter supplies of Group II base oils at the start of this year and more plentiful availability of Group III supplies.Total US base oils imports of 1.32mn bl (186,000t) in December rose from 1.04mn bl the previous month, government data showed.Most of the supplies consisted of Group III base oils.The country’s imports still fell by 9pc and for an eighth month from year-earlier levels.The drop in supplies cut total shipments to 14.81mn bl in 2023. The volume fell by 9pc from 16.27mn bl the previous year to the lowest since 2020.US imports rose in December as a surge in cargoes from South Korea and Indonesia boosted shipments from Asia to more than 700,000bl.The volume from Asia rose from less than 210,000bl in November and from typical levels of around 400,000 bl/month over the past year.The rise in shipments from Asia outweighed a drop in supplies from the Mideast Gulf to a six-month low of close to 310,000bl.The rise in US base oils imports contrasted with a drop in the country’s base oils exports in December.The surplus of exports over imports narrowed in response to around 1.03mn bl, from more than 1.40mn bl the previous month.The December surplus was still the second highest in seven months and likely cushioned the impact of a seasonal slowdown in domestic demand in the US at year-end.Most of the exports likely consisted of Group II base oils. Most of the imports consisted of Group III base oils.The composition of any supply-build at year-end likely reflected that dynamic. The seasonal slowdown in demand then added to the impact of rising Group III supplies..US’ Dec base oils exports stay high
