US base oils and lube demand fell in July and lagged supply amid a simultaneous slowdown in domestic consumption and exports.A round of stock-building cushioned the slowdown as distributors and blenders sought to boost inventory levels to cover against weather-related disruptions during the Atlantic hurricane season.Those stock-building moves began to go into reverse in recent weeks as the market prepares for a seasonal slowdown in activity in the final months of the year.The trend increased the urgency for a recovery in domestic or overseas demand to avoid a large build-up of surplus supplies.US base oils and lube consumption of 2.75 million barrels (387,000 tonnes) in July fell by 6% and for a third month from year-earlier levels, EIA data showed.US base oils and lube exports of 3.42 million barrels in July fell from 4.0 million barrels in June and by 5% from year-earlier levels to a nine-month low.Total demand, or domestic consumption and exports combined, duly fell to 6.16 million barrels in July, down from 6.59 million barrels the previous month.The slowdown contrasted with a rise in supply and a subsequent surplus of more than 500,000 barrels in July.The surplus was the largest this year.A heavy round of stock-building helped to absorb the surplus, keeping market availability balanced-to-tight.US domestic and export base oils prices extended their rise in July relative to feedstock prices and relative to other regions, reflecting the firm fundamentals.Support from stock-building was now unwinding amid easing concerns about weather-related supply disruptions. The focus switched instead to the state of demand over the coming months.The dynamic put the onus back on domestic or overseas demand to absorb a larger share of the country's base oils supplies.The ongoing fall in domestic demand showed little signs of changing any time soon as US economic and manufacturing activity slowed.Overseas demand for US base oils supplies also faced the challenge of a seasonal dip in consumption in markets like Latin America and Europe over the coming months.The trend boosted the importance of US base oils prices that increased the incentive for refiners to trim output or for overseas buyers to procure more supplies.US export prices fell in recent weeks, facilitating a pick-up in overseas demand.But prices remained at a premium to imported cargo prices in markets like India, curbing the pace of any revival in buying interest..US' July base oils supply rises
US base oils and lube demand fell in July and lagged supply amid a simultaneous slowdown in domestic consumption and exports.A round of stock-building cushioned the slowdown as distributors and blenders sought to boost inventory levels to cover against weather-related disruptions during the Atlantic hurricane season.Those stock-building moves began to go into reverse in recent weeks as the market prepares for a seasonal slowdown in activity in the final months of the year.The trend increased the urgency for a recovery in domestic or overseas demand to avoid a large build-up of surplus supplies.US base oils and lube consumption of 2.75 million barrels (387,000 tonnes) in July fell by 6% and for a third month from year-earlier levels, EIA data showed.US base oils and lube exports of 3.42 million barrels in July fell from 4.0 million barrels in June and by 5% from year-earlier levels to a nine-month low.Total demand, or domestic consumption and exports combined, duly fell to 6.16 million barrels in July, down from 6.59 million barrels the previous month.The slowdown contrasted with a rise in supply and a subsequent surplus of more than 500,000 barrels in July.The surplus was the largest this year.A heavy round of stock-building helped to absorb the surplus, keeping market availability balanced-to-tight.US domestic and export base oils prices extended their rise in July relative to feedstock prices and relative to other regions, reflecting the firm fundamentals.Support from stock-building was now unwinding amid easing concerns about weather-related supply disruptions. The focus switched instead to the state of demand over the coming months.The dynamic put the onus back on domestic or overseas demand to absorb a larger share of the country's base oils supplies.The ongoing fall in domestic demand showed little signs of changing any time soon as US economic and manufacturing activity slowed.Overseas demand for US base oils supplies also faced the challenge of a seasonal dip in consumption in markets like Latin America and Europe over the coming months.The trend boosted the importance of US base oils prices that increased the incentive for refiners to trim output or for overseas buyers to procure more supplies.US export prices fell in recent weeks, facilitating a pick-up in overseas demand.But prices remained at a premium to imported cargo prices in markets like India, curbing the pace of any revival in buying interest..US' July base oils supply rises
