US base oils imports fell in July on the back of a slump in shipments from the Middle East.An unusual surge in supplies from Canada cushioned the fall.A seasonal slowdown in US base oils demand in the third quarter of the year curbed further the impact of the drop in supplies.The dip in imports was also smaller than the slump in US base oils and lube exports in July.The disparity triggered a slump in US net exports to the lowest level since early-2023.The drop in net exports raised the prospect of speeding up a rise in surplus supplies in the US domestic market.Total base oils imports of 1.50 million barrels (211,000 tonnes) in July fell from 1.67 million barrels the previous month, government data showed..Most of the supplies consisted of Group III base oils.The July volume was still well above typical levels of around 1.30 million barrels/month over the past year.Imports held relatively firm in July even as shipments from the Middle East fell to the second-lowest level in more than three years..The drop in shipments reflected the impact of plant-maintenance at key Group III base oils units in Bahrain and the UAE during the second quarter of the year.Imports from Canada by contrast rebounded in June, before extending their rise in July to the highest in more than a decade.A Group III unit in Canada also underwent maintenance work at the beginning of the second quarter of the year. US base oils imports showed signs of staying lower in August before recovering in September.Group III base oils prices held in a narrow range relative to feedstock prices and Group II prices during the third quarter of the year, even with the drop in supply.The steady price-differentials suggested that a seasonal slowdown in demand balanced out the impact of lower import volumes.The market now faced the prospect of weak demand during the final months of the year, combined with a recovery in imports..US’ July base oils exports fall.S Korea July exports to Americas mixed.US’ June base oils imports rise.Base Oil News stories and analysis also available on ICIS platform
