US base oils imports fell for a thirteenth month in May as lower prices and rising domestic output of Group III base oils cut the attraction of moving more supplies to the country.The slowdown in Group III shipments to the US raised the prospect of more of those supplies moving to other outlets instead like Europe and Asia.It also left US refiners’ supplies covering a larger share of domestic demand.The move cut their availability of surplus volumes for export.The smaller surplus in turn trimmed their need to maintain prices at levels that kept open the arbitrage to overseas markets.Total base oils imports of less than 980,000 barrels (137,000 tonnes) in May fell from more than 1.36 million barrels in April and by 14% from year-earlier levels.The last time imports rose from year-earlier levels was in April 2023.A sustained fall in domestic demand since then coincided with a rise in US refiners’ Group III base oils output.Lower demand and rising domestic supply cut requirements for overseas shipments.A rise in domestic demand from the end of the first quarter of the year then coincided with a slump in US Group III base oils prices.The move slashed the attraction of moving more shipments to the US, leaving the country more reliant on domestic supplies.Base oils imports from the UAE fell in May to a three-month low of less than 55,000 barrels, down from more than 210,000 barrels the previous month.Base oils imports from South Korea also stayed lower than usual in May, following plant maintenance work at a key Group III plant in the country that began around mid-March.The completion of the maintenance work in second-half April preceded a rebound in South Korea’s base oils exports to the US in May. A large portion of those supplies was set to reach the US this month.There were signs of a subsequent slowdown in shipments from South Korea to the US in June, raising the prospect of a drop in cargo arrivals from the northeast Asian country next month..US’ May base oils/lube exports fall.S Korea’s May base oils exports rise to US, Europe
US base oils imports fell for a thirteenth month in May as lower prices and rising domestic output of Group III base oils cut the attraction of moving more supplies to the country.The slowdown in Group III shipments to the US raised the prospect of more of those supplies moving to other outlets instead like Europe and Asia.It also left US refiners’ supplies covering a larger share of domestic demand.The move cut their availability of surplus volumes for export.The smaller surplus in turn trimmed their need to maintain prices at levels that kept open the arbitrage to overseas markets.Total base oils imports of less than 980,000 barrels (137,000 tonnes) in May fell from more than 1.36 million barrels in April and by 14% from year-earlier levels.The last time imports rose from year-earlier levels was in April 2023.A sustained fall in domestic demand since then coincided with a rise in US refiners’ Group III base oils output.Lower demand and rising domestic supply cut requirements for overseas shipments.A rise in domestic demand from the end of the first quarter of the year then coincided with a slump in US Group III base oils prices.The move slashed the attraction of moving more shipments to the US, leaving the country more reliant on domestic supplies.Base oils imports from the UAE fell in May to a three-month low of less than 55,000 barrels, down from more than 210,000 barrels the previous month.Base oils imports from South Korea also stayed lower than usual in May, following plant maintenance work at a key Group III plant in the country that began around mid-March.The completion of the maintenance work in second-half April preceded a rebound in South Korea’s base oils exports to the US in May. A large portion of those supplies was set to reach the US this month.There were signs of a subsequent slowdown in shipments from South Korea to the US in June, raising the prospect of a drop in cargo arrivals from the northeast Asian country next month..US’ May base oils/lube exports fall.S Korea’s May base oils exports rise to US, Europe