US base oils imports rose in November to the second-highest level in more than two years, adding to domestic supply at a time when demand faced a seasonal slowdown.The rise in imports also eroded the benefit of firm US base oils export volumes in November and raised the prospect of a pick-up in surplus supplies at year-end.US base oils imports showed signs of slowing in December, curbing the size of any such supply-build.Even so, the surge in imports in November highlighted the limits of US refiners’ ability to manage supply levels at year-end without a sharper cut in production levels.Total base oils imports of 1.65 million barrels (232,000 tonnes) in November rose from 1.05 million barrels the previous month, government data showed.Imports from countries with Group III base oils production capacity accounted for more than 95% of the total.The total volume in November was the second-highest since the third quarter of 2022. The highest volume in that time was in September.Imports surged in two of the last three months to November even with US Group III base oils prices holding at a discount to prices in Europe and in Asia.The rise in shipments, despite more attractive prices in other markets, highlighted the global oversupply of Group III base oils.The oversupply boosted the attraction of outlets that were able to absorb large volumes even when prices were less competitive.The rise in shipments of mostly Group III base oils contrasted with US exports of mostly Group II base oils.The dynamic raised the prospect of Group III base oils accounting for a larger-than-usual share of any supply-build in the US at year-end.The supply-imbalance, and the unusually narrow premium of US Group III base oils prices to Group II base oils, boosted the incentive for refiners to cut output of Group III base oils and increase production of Group II supplies instead..US’ Nov base oils/lube exports slip.US’ October base oils supply falls.S Korea’s Nov exports to US edge down
