US base oils and lube exports held in a narrow range in January for a third month as a sustained rise in shipments to Mexico and Africa balanced out a slowdown in flows to other markets.The steady total export volumes helped to slow a rise in surplus supplies in the US at a time when domestic demand faced a seasonal slowdown during the winter months.Total base oils and lube exports of more than 3.70 million barrels (529,000 tonnes) in January were similar to export volumes in November and December, government data showed..Total exports of around 11.20 million barrels during the three months to January were still down 6% from close to 11.90 million barrels during the same period a year earlier.The contraction would have been even sharper but for a surge in shipments to Mexico and Africa.Exports to those two markets rose for an eighth month in January from year-earlier levels and accounted for more than 55% of total US exports in the three months to January.The share was up from around 45% of total exports during the same period a year earlier.The rise in shipments to Mexico and Africa helped to clear a swathe of surplus volumes from the US market.The subsequent drop in shipments to other outlets helped to cushion against the impact of a seasonal slowdown in demand in markets like Europe, and to curb the pace of any supply-build in those markets.The rise in exports to markets like Mexico and West Africa rather than to other outlets suggested that the removal of a large volume of surplus supplies from the US took priority over the price of the supplies.It also pointed to moves to remove the supplies in a way that curbed pressure on prices for shipments to more regular markets like Europe and South America.The moves coincided with steady US Group II base oils export prices from mid-November to end-February.The stable prices contrasted with a slump in base oils export prices during the same period a year earlier..US’ December base oils supply falls .US’ December base oils demand falls.Base Oil News stories and analysis also available on ICIS platform
