US base oils imports fell for a ninth month in January in the face of weak domestic demand and plentiful supplies.Total imports of 1.21mn bl (170,000t) in January fell from 1.32mn bl in December and by 9pc from year earlier levels, government data showed.Imports of 1.08mn bl from markets that produce Group III base oils fell by 7pc in January from year-earlier levels.Weak domestic supply-demand fundamentals contrasted with firm US Group III base oils prices relative to other regions like Europe.The higher prices maintained the incentive for overseas refiners to move more shipments to the US.Producers in the Mideast Gulf especially showed signs of directing more shipments to the US in response.Group III base oils imports from the region rose to a four-month high in January even as total imports fell.The January shipments included a record-high volume of supplies from the UAE.The rise in supplies lifted the share of shipments from the Mideast Gulf to 47pc of the US’ total Group III imports in the year to January.The share was up from around 45pc of Group III imports in 2021 and in 2022.The rising share of supplies from the Mideast Gulf was at the expense of shipments from Asia, whose market share fell in response.The trend increased pressure on Group III producers in Asia to move more supplies to other markets instead.A rise in shipments to China was less feasible following that country’s recent rise in Group III base oils production. Demand for overseas supplies has fallen in response.India’s demand for overseas supplies could follow a similar trajectory. A raft of new Group III production capacity is scheduled to start up in that country in the coming months..Chevron Lummus and Hongrun Petrochemical Commission White Oil Unit.S Korea's Jan exports rise to Europe, fall to US
