US base oils exports to Mexico stayed rangebound at lower levels in March for a sixth month.The lower volumes contrasted with a sustained surge in shipments of automobile and marine engine oils to the Latin American country.The timing of the drop in base oils exports coincided with Mexico’s implementation of stricter rules on imports of products like base oils from last October.Base oils exports of 499,000 barrels (70,300 tonnes) to Mexico in March fell from more than 530,000 barrels the previous month, government data showed.The volume was still close to average levels of 476,000 barrels/month in the six months since October.The steady flows contrasted with a slump in exports from year-earlier levels.Shipments were down more than 50% in March from the same time last year and from close to 740,000 barrels/month in the first nine months of last year.US exports of automotive and marine engine oils by contrast extended their surge in March to a record-high of more than 1.37 million barrels.Exports held above the 1-million-barrel level for a fourth straight month, after averaging close to 400,000 barrels/month in the first nine months of last year.The combined volume of base oils and engine oils exports to Mexico duly rose to a record-high of close to 1.90 million barrels in March.The volume far exceeded US exports to the country before October 2023. It also far exceeded Mexico’s lube consumption of around 340,000 barrels/month.The rise in US shipments to Mexico also accounted for an unusually large share of the US’ total base oils and lube exports in March.The shipments accounted more than 45% of the US’ total base oils and engine oil exports every month so far this year.Before this year, US shipments bound for Mexico had exceeded that share of total exports just two times since 2018.The size of the rise in shipments to a single destination, where lube demand has been falling, suggested that US exporters’ priority was an outlet to clear surplus volumes.It also suggested that the surge in the US’ total lubricants exports in the first quarter of the year had less involvement from the country’s domestic blenders..US’ March base oils exports stay lower
