US’ May base oils/lube demand rises

US base oils and lube demand rose to an eleven-month high in May amid firmer domestic consumption and a surge in exports.

Domestic demand of 3.01mn bl (424,200t) in May rose from 2.52mn bl the previous month and by 1pc from year-earlier levels, according to the EIA.

Exports of 4.09mn bl in May rose from 3.17mn bl the previous month to the second-highest level on record. The highest volume had been in March.

Unusually high exports since then cushioned the impact of lower-than-usual domestic demand.

High exports, combined with a pick-up in domestic demand, boosted total demand to 7.10mn bl in May, up from 5.69mn bl in April.

Demand rose above the 6mn bl/month level for the first time since January and above the 7mn bl/month level for the first time since June 2022.