US base oils exports rose to a four-month high in April, tightening surplus availability in a market facing a seasonal pick-up in domestic demand and plant maintenance work.Total exports of 2.11 million barrels (297,000 tonnes) in April rose from 1.85 million barrels in March and by 1% from year-earlier levels, government data showed.The rise in exports extended a sustained surge in base oils and lubricants shipments from the second half of last year.The wave of shipments countered the impact of persistently low base oils and lubricants demand in the US domestic market.The rise in exports in April, combined with firmer demand and plant maintenance work, duly tightened supply in a market whose fundamentals were already relatively balanced.US base oils posted prices rose in April, while spot prices extended their rise through May, partly in response to the tighter supply-demand fundamentals.The rise in exports in April, even with the tighter fundamentals in the domestic market, highlighted the importance of overseas shipments staying high in order to support those tighter fundamentals.The rise in US base oils exports contrasted with a drop in shipments of automotive and marine engine oils in April to a six-month low of less than 1.30 million barrels.The volume fell from more than 2.25 million barrels the previous month.The March volume was the highest in at least six years, with more than 70% of the volume moving to Mexico.The drop in shipments in April likely partly reflected the tighter availability of light-grade Group II base oils in the US market.It also coincided with a surge in US Group II export prices versus heating oil and vacuum gasoil prices from second-half March.The rebounding base oils premium cut the attraction for buyers in markets like Mexico to procure additional light-grade base oils supplies from the US.US base oils and engine oil lubricants to Mexico came to 1.34 million barrels in April.The volume remained unusually high and far exceeded Mexico’s finished lube consumption of around 330,000 barrels/month.But it fell from more than 1.87 million barrels the previous month to the lowest since last November..US’ March base oils/lube demand rises.US’ March base oils/lube supply rises
US base oils exports rose to a four-month high in April, tightening surplus availability in a market facing a seasonal pick-up in domestic demand and plant maintenance work.Total exports of 2.11 million barrels (297,000 tonnes) in April rose from 1.85 million barrels in March and by 1% from year-earlier levels, government data showed.The rise in exports extended a sustained surge in base oils and lubricants shipments from the second half of last year.The wave of shipments countered the impact of persistently low base oils and lubricants demand in the US domestic market.The rise in exports in April, combined with firmer demand and plant maintenance work, duly tightened supply in a market whose fundamentals were already relatively balanced.US base oils posted prices rose in April, while spot prices extended their rise through May, partly in response to the tighter supply-demand fundamentals.The rise in exports in April, even with the tighter fundamentals in the domestic market, highlighted the importance of overseas shipments staying high in order to support those tighter fundamentals.The rise in US base oils exports contrasted with a drop in shipments of automotive and marine engine oils in April to a six-month low of less than 1.30 million barrels.The volume fell from more than 2.25 million barrels the previous month.The March volume was the highest in at least six years, with more than 70% of the volume moving to Mexico.The drop in shipments in April likely partly reflected the tighter availability of light-grade Group II base oils in the US market.It also coincided with a surge in US Group II export prices versus heating oil and vacuum gasoil prices from second-half March.The rebounding base oils premium cut the attraction for buyers in markets like Mexico to procure additional light-grade base oils supplies from the US.US base oils and engine oil lubricants to Mexico came to 1.34 million barrels in April.The volume remained unusually high and far exceeded Mexico’s finished lube consumption of around 330,000 barrels/month.But it fell from more than 1.87 million barrels the previous month to the lowest since last November..US’ March base oils/lube demand rises.US’ March base oils/lube supply rises
