US base oils and lube exports rose in June to the second-highest level this year, at the same time as an extended round of stock-building supported domestic demand.Firmer overseas and domestic demand, as well as plant maintenance work in the US in June, kept US base oils supply relatively tight heading into the third quarter of the year.Base oils exports of 2.15 million barrels (303,000 tonnes) in June rose from 1.74 million barrels the previous month to the highest since December, government data showed.Lube and grease exports of 1.80 million barrels in June rose from 1.66 million barrels the previous month to the highest since March.Base oils and lube exports rose in June even with US domestic and export base oil prices rising strongly relative to prices in other markets like Europe, India and southeast Asia.The disconnect between rising exports and less competitive prices suggested a large portion of the supplies consisted of term shipments to overseas markets like Europe.The dynamic suggested that exports would remain firm to those key outlets and faced a slowdown to markets that absorbed more of the US’ surplus spot volumes, such as India.Even so, the rise in exports included a jump in engine oil lubricants to regular outlets like Mexico and to less frequent destinations like Lithuania and Nigeria.The rise in shipments to Mexico followed a slowdown in flows in April and May, which in turn came after a surge in exports to the country in the first quarter of the year.The surge in exports at that time coincided with unusually weak US Group II light-grade prices relative to diesel prices.US base oils exports got further support from a sustained rise in shipments to outlets like Singapore.Before this year, the island-state was an infrequent destination for supplies of US origin.It has this year become an increasingly key outlet for a growing volume of US shipments.The June exports to Singapore were the highest in more than a decade and added supplies to a region that already faced healthy availability of premium-grade base oils.The rise in the US' total base oils exports in June mostly reflected a surge in shipments from the district of San Francisco to a multi-year high.Exports of more than 800,000 barrels in June from San Francisco and Mobile combined duly rebounded from close to 400,000 barrels in May to the highest in seven months..US’ May base oils supply falls
US base oils and lube exports rose in June to the second-highest level this year, at the same time as an extended round of stock-building supported domestic demand.Firmer overseas and domestic demand, as well as plant maintenance work in the US in June, kept US base oils supply relatively tight heading into the third quarter of the year.Base oils exports of 2.15 million barrels (303,000 tonnes) in June rose from 1.74 million barrels the previous month to the highest since December, government data showed.Lube and grease exports of 1.80 million barrels in June rose from 1.66 million barrels the previous month to the highest since March.Base oils and lube exports rose in June even with US domestic and export base oil prices rising strongly relative to prices in other markets like Europe, India and southeast Asia.The disconnect between rising exports and less competitive prices suggested a large portion of the supplies consisted of term shipments to overseas markets like Europe.The dynamic suggested that exports would remain firm to those key outlets and faced a slowdown to markets that absorbed more of the US’ surplus spot volumes, such as India.Even so, the rise in exports included a jump in engine oil lubricants to regular outlets like Mexico and to less frequent destinations like Lithuania and Nigeria.The rise in shipments to Mexico followed a slowdown in flows in April and May, which in turn came after a surge in exports to the country in the first quarter of the year.The surge in exports at that time coincided with unusually weak US Group II light-grade prices relative to diesel prices.US base oils exports got further support from a sustained rise in shipments to outlets like Singapore.Before this year, the island-state was an infrequent destination for supplies of US origin.It has this year become an increasingly key outlet for a growing volume of US shipments.The June exports to Singapore were the highest in more than a decade and added supplies to a region that already faced healthy availability of premium-grade base oils.The rise in the US' total base oils exports in June mostly reflected a surge in shipments from the district of San Francisco to a multi-year high.Exports of more than 800,000 barrels in June from San Francisco and Mobile combined duly rebounded from close to 400,000 barrels in May to the highest in seven months..US’ May base oils supply falls
