US’ Feb base oils/lube demand falls

US base oils and lube consumption slumped in February from the previous month amid a synchronised slowdown in domestic and overseas demand.  

Demand of 5.44mn bl (766,000t) from domestic and overseas buyers in February fell by 15pc from 6.41mn bl the previous month, according to the EIA.

The volume was the lowest for the month of February since 2014.

The larger-than-usual fall in demand from January reflected a seasonal slowdown in domestic consumption.

Base oils exports usually hold firm or rise in the month of February, balancing out the slowdown in domestic demand.

Exports instead fell in February from the previous month as overseas buyers locked in supplies from other sources at more competitive prices.