US base oils supply fell to a ten-month low in December as a slump in imports more than countered a recovery in domestic output.The diverging trends slashed Group III base oils’ share of total US base oils supply, while Group II base oils’ share rose.Base oils output of 5.05 million barrels (711,000 tonnes) in December recovered from 4.42 million barrels the previous month, government data showed.Output fell in November because of a slump in production in the Louisiana Gulf coast and Texas Gulf coast districts.Output in the Texas district then rebounded in December. Output in Louisiana also rose but remained down from typical levels.The recovery in output contrasted with a slump in base oils imports in December to the lowest in more than three years.The country’s imports consist mostly of Group III base oils.Total supply, or output and imports combined, duly fell to less than 5.90 million barrels in December.The volume dropped from more than 6.10 million barrels in November to the lowest since last February.The drop in supply cushioned the impact of a seasonal slowdown in demand at the end of last year.It also highlighted the volatility of US monthly base oils imports during the second half of last year, as well as the difficulty of managing that volatility and their impact on the country’s supply balance.The slump in imports in December cut their share of US base oils supply to less than 15% of the total. The share fell from 28% in November to the lowest since mid-2021..Import volumes in the fourth quarter fell from the previous three months to a multi-year low. The third-quarter volume was by contrast the highest since 2022.The lower fourth-quarter import volume, and their lower share of total supply in December, coincided with more stable US Group III base oils prices during that period.The premium of US Group III base oils over Group II light grades edged up from late-October after a sustained slide since mid-2023.US Group III prices also rose strongly versus Group III prices in Europe from the end of the third quarter of last year..Global premium-grade imports from Middle East fall in Dec.US’ December base oils imports fall
