US base oils imports fell for a tenth month in February, mirroring a sustained slowdown in the country’s lube demand.The drop in imports coincided with lower Group III base oils supply in Europe early this year.Signs of muted Group III base oils demand in two of the largest markets for the premium-grade supplies put pressure on overseas refiners to adjust output accordingly.An ongoing fall in Group III base oils prices relative to feedstock prices in both the US and Europe highlighted the product's weak fundamentals and added to the pressure on refiners to cut supply.A sharp drop in outright US Group III base oils prices in recent weeks compounded the pressure on margins and cut further the attraction of moving shipments to the US.Total US base oils imports of 1.12 million barrels (157,000 tonnes) in February fell from more than 1.20 million barrels in January and by 24% from year-earlier levels, government data showed.Imports from countries with Group III base oils production fell by 20% in February to 1.00 million barrels.Imports from the Mideast Gulf fell in February as a dip in shipments from the UAE outweighed a surge in supplies from Bahrain to the highest in almost four years.The slowdown was likely to be shortlived.A cargo of Group III base oils from the UAE reached the US in first-half March. Another shipment was scheduled to reach the US in second-half April.The shipments were lined up at a time when US Group III base oils prices were more than $140/tonne higher than prices in Europe.That premium flipped to a widening discount to Europe prices this month following a slump in US Group III prices since second-half March.The drop in prices cut the attraction of moving more shipments to the US and raised the prospect of extending the slowdown in the country’s base oils imports..US’ February base oils exports improve
US base oils imports fell for a tenth month in February, mirroring a sustained slowdown in the country’s lube demand.The drop in imports coincided with lower Group III base oils supply in Europe early this year.Signs of muted Group III base oils demand in two of the largest markets for the premium-grade supplies put pressure on overseas refiners to adjust output accordingly.An ongoing fall in Group III base oils prices relative to feedstock prices in both the US and Europe highlighted the product's weak fundamentals and added to the pressure on refiners to cut supply.A sharp drop in outright US Group III base oils prices in recent weeks compounded the pressure on margins and cut further the attraction of moving shipments to the US.Total US base oils imports of 1.12 million barrels (157,000 tonnes) in February fell from more than 1.20 million barrels in January and by 24% from year-earlier levels, government data showed.Imports from countries with Group III base oils production fell by 20% in February to 1.00 million barrels.Imports from the Mideast Gulf fell in February as a dip in shipments from the UAE outweighed a surge in supplies from Bahrain to the highest in almost four years.The slowdown was likely to be shortlived.A cargo of Group III base oils from the UAE reached the US in first-half March. Another shipment was scheduled to reach the US in second-half April.The shipments were lined up at a time when US Group III base oils prices were more than $140/tonne higher than prices in Europe.That premium flipped to a widening discount to Europe prices this month following a slump in US Group III prices since second-half March.The drop in prices cut the attraction of moving more shipments to the US and raised the prospect of extending the slowdown in the country’s base oils imports..US’ February base oils exports improve
