US domestic base oils and lube demand slid to a record-low in December as buyers sought to maintain low stocks at a time of year when lube consumption faced a seasonal lull.The country’s base oils and lube exports by contrast rose to the second-highest level on record.The diverging trends triggered a fall in total demand that was smaller than year-earlier levels and trimmed the size of the subsequent supply-build.The trend highlighted the importance for US refiners to maintain high export volumes to cushion the impact of weak domestic demand.The unusually light round of plant maintenance work in the US early this year added to the importance of such moves.Domestic consumption of 1.16mn bl (163,000t) in December fell from an already-low 1.64mn bl in November to a record-low, government data showed.The fall in consumption for the sixth time in seven months slashed total demand in 2023 to 30.29mn bl in 2023.The volume fell by 25pc from 40.39mn bl in 2022 to a record low.The second-lowest volume was around 37.4mn bl in 2020, when pandemic-related lockdowns slashed consumption in the first half of that year.The December volume was down more than 60pc from December 2022, when lower consumption triggered a surge in US base oils and lube stocks to a thirty-one-month high.US inventories also rose this time, but much less sharply because of a surge in shipments to overseas markets.Total exports of 4.33mn bl in December rose from an already-high 4.15mn bl in November to the second highest on record.The rise in shipments contrasted a fall in exports in December 2022 to a nine-year low.The surge in exports late last year followed a slump in US base oils export prices that opened the arbitrage to a raft of overseas markets, ICIS data showed.The slump in exports in late 2022 coincided with a less workable arbitrage to markets like India, as well as a wide-open arbitrage to move shipments from Asia to the Americas.Total demand, or domestic consumption and exports combined, still fell to 5.49mn bl in December, down from 5.80mn bl the previous month.But the surge in exports supported total demand well up from 4.95mn bl in December 2022..US’ Dec base oils/lube supply rises
US domestic base oils and lube demand slid to a record-low in December as buyers sought to maintain low stocks at a time of year when lube consumption faced a seasonal lull.The country’s base oils and lube exports by contrast rose to the second-highest level on record.The diverging trends triggered a fall in total demand that was smaller than year-earlier levels and trimmed the size of the subsequent supply-build.The trend highlighted the importance for US refiners to maintain high export volumes to cushion the impact of weak domestic demand.The unusually light round of plant maintenance work in the US early this year added to the importance of such moves.Domestic consumption of 1.16mn bl (163,000t) in December fell from an already-low 1.64mn bl in November to a record-low, government data showed.The fall in consumption for the sixth time in seven months slashed total demand in 2023 to 30.29mn bl in 2023.The volume fell by 25pc from 40.39mn bl in 2022 to a record low.The second-lowest volume was around 37.4mn bl in 2020, when pandemic-related lockdowns slashed consumption in the first half of that year.The December volume was down more than 60pc from December 2022, when lower consumption triggered a surge in US base oils and lube stocks to a thirty-one-month high.US inventories also rose this time, but much less sharply because of a surge in shipments to overseas markets.Total exports of 4.33mn bl in December rose from an already-high 4.15mn bl in November to the second highest on record.The rise in shipments contrasted a fall in exports in December 2022 to a nine-year low.The surge in exports late last year followed a slump in US base oils export prices that opened the arbitrage to a raft of overseas markets, ICIS data showed.The slump in exports in late 2022 coincided with a less workable arbitrage to markets like India, as well as a wide-open arbitrage to move shipments from Asia to the Americas.Total demand, or domestic consumption and exports combined, still fell to 5.49mn bl in December, down from 5.80mn bl the previous month.But the surge in exports supported total demand well up from 4.95mn bl in December 2022..US’ Dec base oils/lube supply rises
