US base oils and lube exports edged down to a three-month low in December, even as shipments to Mexico climbed close to a record-high.Excluding shipments to Mexico, US exports fell to a five-month low.The slowdown in exports raised the prospect a rise in surplus supplies in the US at the end of the year.The slowdown could also indicate a smaller surplus that curbed the need to move more arbitrage shipments to markets like Africa.Steady US base oils export prices so far this year, and some refiners’ moves to raise posted prices, pointed to such a scenario of more balanced supply-demand fundamentals than this time last year.Total base oils and lube exports of 3.73 million barrels (525,000 tonnes) in December edged down slightly from November and by 11% from year-earlier levels, government data showed.Exports fell at a time of year when domestic base oils and lube demand in the US faced a seasonal slowdown.A sustained rise in exports in the first ten months of the year, and especially in the third quarter, helped to balance out the impact of persistently weak domestic demand.The drop in exports in December eroded that support.More muted export volumes coincided with US base oils export prices that remained at a steeper discount to prices in markets like Europe and India than in the third quarter of last year.The lower US export prices suggested that the arbitrage remained feasible if sellers sought to line up such shipments.The more muted flow of shipments to more distant markets could point to waning pressure to clear such supplies.The surge in shipments to Mexico curbed further the pressure to move surplus volumes to those more distant markets.Base oils and engine oils exports of 1.93 million barrels to Mexico in December were the second-highest on record. The highest was 1.94 million barrels in October.The unusually large volume boosted their share of US base oils and engine oils shipments to 55% of total exports.The share rose from 45% in the first eleven months of the year to the highest in at least seven years..US’ November base oils output falls.US’ November base oils demand falls.Asia’s December lube demand rises .Brazil’s Dec base oil supply lags demand.Argentina’s Dec base oils supply rises
US base oils and lube exports edged down to a three-month low in December, even as shipments to Mexico climbed close to a record-high.Excluding shipments to Mexico, US exports fell to a five-month low.The slowdown in exports raised the prospect a rise in surplus supplies in the US at the end of the year.The slowdown could also indicate a smaller surplus that curbed the need to move more arbitrage shipments to markets like Africa.Steady US base oils export prices so far this year, and some refiners’ moves to raise posted prices, pointed to such a scenario of more balanced supply-demand fundamentals than this time last year.Total base oils and lube exports of 3.73 million barrels (525,000 tonnes) in December edged down slightly from November and by 11% from year-earlier levels, government data showed.Exports fell at a time of year when domestic base oils and lube demand in the US faced a seasonal slowdown.A sustained rise in exports in the first ten months of the year, and especially in the third quarter, helped to balance out the impact of persistently weak domestic demand.The drop in exports in December eroded that support.More muted export volumes coincided with US base oils export prices that remained at a steeper discount to prices in markets like Europe and India than in the third quarter of last year.The lower US export prices suggested that the arbitrage remained feasible if sellers sought to line up such shipments.The more muted flow of shipments to more distant markets could point to waning pressure to clear such supplies.The surge in shipments to Mexico curbed further the pressure to move surplus volumes to those more distant markets.Base oils and engine oils exports of 1.93 million barrels to Mexico in December were the second-highest on record. The highest was 1.94 million barrels in October.The unusually large volume boosted their share of US base oils and engine oils shipments to 55% of total exports.The share rose from 45% in the first eleven months of the year to the highest in at least seven years..US’ November base oils output falls.US’ November base oils demand falls.Asia’s December lube demand rises .Brazil’s Dec base oil supply lags demand.Argentina’s Dec base oils supply rises
