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US base oils and lubricants exports climbed to a five-month high in March as shipments to Nigeria, India and Mexico rose.
Record exports to Africa and rebounding flows to India helped clear surplus US barrels before global base oils prices surged in March.
Stronger exports further tightened already shrinking US inventories ahead of broader supply disruptions and stronger global demand.
US base oils and lubricants exports rose to a five-month high in March as surging shipments to Nigeria and India cleared surplus volumes just as global supply balances tightened.
Total exports rose to more than 3.20 million barrels (456,000 tonnes) in March, up from around 2.50 million barrels in February and the highest since last October, Census Bureau data showed.
Exports fell for a tenth straight month year on year, with the sustained slowdown coinciding with a slump in shipments to Mexico and stronger domestic US demand.
Lower base oils production and shrinking inventories in January and February further curbed surplus supply.
The rebound in shipments to Africa and India, along with a partial recovery in flows to Mexico, further reduced surplus availability ahead of unexpected global supply disruptions from late February.
Key Highlights
· US exports to Nigeria and South Africa rose to the highest in more than eight years.
· Shipments to Africa exceeded 500,000 barrels and accounted for a record 17% of total US exports, well above the previous peak share of less than 11% reached in December.
· Exports to India rebounded to a nine-month high, following unusually weak shipments since July 2025.
· Shipments to Mexico climbed to a five-month high even as they extended their fall year-on-year for a ninth straight month.
· Combined exports to Africa, India and Mexico accounted for 49% of total US shipments, recovering from 26% in January to the highest since June 2025.
Market Repercussions
India, West Africa and Mexico typically served as major outlets for surplus US base oils supplies, with prices often at discounts to more established markets such as Europe and South America.
The surge in March shipments to those markets pointed to cargoes arranged before the global supply disruptions emerged in late February, and priced before the rally that followed.
The shipments left the US market with an even thinner buffer heading into a period of stronger global demand, as buyers sought to lock in additional volumes ahead of expected supply disruptions.
