US base oils and lube exports fell to a seven-month low in May, adding to signs of tighter domestic supply.Total base oils and lube exports came to more than 3.40 million barrels (480,000 tonnes) in May, Census Bureau data showed.The volume usually accounts for at least 95% of the EIA’s monthly export volume.Base oils exports of 1.74 million barrels accounted for around half the total May volume.Total base oils and lube exports fell from close to 3.70 million barrels in April and by 14% from year-earlier levels.The fall in exports from year-earlier levels was the first since July 2023.Rising shipment volumes since then helped to balance out unusually weak base oils and lubricants demand in the US’ domestic market.The drop in exports in May likely partly reflected the impact of lower supply because of plant maintenance work.It also pointed to an extension in a recent recovery in domestic demand and to more limited surplus supplies in response.Concern about weather-related supply disruptions during the summer months could extend that pick-up in demand into the start of the third quarter of the year.US Group II export prices rebounded from the end of the first quarter of the year in response to shrinking surplus supply.The higher prices closed the arbitrage for spot shipments to multiple outlets like Africa and India.Total US base oil exports of less than 500 barrels to West Africa in May were the lowest in six months.US export prices remained at levels at the start of the third quarter of the year that kept the arbitrage shut.The closed arbitrage opportunities suggested that surplus US supply remained limited. .Americas/EMEA base oils supply outlook: Week of 8 July.US April base oils supply edges down.US’ April base oils/lube demand rises
US base oils and lube exports fell to a seven-month low in May, adding to signs of tighter domestic supply.Total base oils and lube exports came to more than 3.40 million barrels (480,000 tonnes) in May, Census Bureau data showed.The volume usually accounts for at least 95% of the EIA’s monthly export volume.Base oils exports of 1.74 million barrels accounted for around half the total May volume.Total base oils and lube exports fell from close to 3.70 million barrels in April and by 14% from year-earlier levels.The fall in exports from year-earlier levels was the first since July 2023.Rising shipment volumes since then helped to balance out unusually weak base oils and lubricants demand in the US’ domestic market.The drop in exports in May likely partly reflected the impact of lower supply because of plant maintenance work.It also pointed to an extension in a recent recovery in domestic demand and to more limited surplus supplies in response.Concern about weather-related supply disruptions during the summer months could extend that pick-up in demand into the start of the third quarter of the year.US Group II export prices rebounded from the end of the first quarter of the year in response to shrinking surplus supply.The higher prices closed the arbitrage for spot shipments to multiple outlets like Africa and India.Total US base oil exports of less than 500 barrels to West Africa in May were the lowest in six months.US export prices remained at levels at the start of the third quarter of the year that kept the arbitrage shut.The closed arbitrage opportunities suggested that surplus US supply remained limited. .Americas/EMEA base oils supply outlook: Week of 8 July.US April base oils supply edges down.US’ April base oils/lube demand rises