US base oils supply rose in June even as domestic output fell to a five-month low.A rebound in imports more than covered for the drop in output and increased their share of US’ total supply to the highest in a year.Base oils and lube output of 4.68 million barrels (659,000 tonnes) in June fell from 5.08 million barrels the previous month to the lowest since January, EIA data showed.Output fell mostly because of a dip in paraffinic base oils production in the Louisiana Gulf coast district to 1.27 million barrels in June.The volume fell from 1.57 million barrels the previous month to the lowest level in a year.The slowdown coincided with plant maintenance work in June at a key Group II base oils plant situated in Louisiana. The plant resumed operations in early July.US naphthenic base oils output also fell in June because of a sharp dip in production in the US Gulf coast region.Lower Group II paraffinic base oils output contrasted with a rebound in US base oils imports in June. Most of those supplies consist of Group III base oils.US imports of 1.45 million barrels in June rebounded from less than 1 million barrels the previous month to the second-highest level this year.Imports rose on the back of a surge in shipments from three major key Group III producers in the Middle East.Total supply, or output and imports combined, duly rose to 6.13 million barrels in June, up from 6.04 million barrels the previous month.Imports accounted for close to 24% of the total volume.The share rose from less than 16% in May to the highest in a year.The trend pointed to rising supplies of Group III base oils as a share of total supply.Growing domestic Group III base oils output added to the share.Maintenance work on the Group II base oils unit in June in turn cut further that product’s share of US total supply.US base oils prices reflected the rising share of Group III base oils and shrinking share of Group II base oils.The premium of US Group III base oils over Group II base oils narrowed further in June and extended its steep slide in the third quarter of the year to the lowest in more than seven years..Global premium-grade imports from Middle East rise in June
US base oils supply rose in June even as domestic output fell to a five-month low.A rebound in imports more than covered for the drop in output and increased their share of US’ total supply to the highest in a year.Base oils and lube output of 4.68 million barrels (659,000 tonnes) in June fell from 5.08 million barrels the previous month to the lowest since January, EIA data showed.Output fell mostly because of a dip in paraffinic base oils production in the Louisiana Gulf coast district to 1.27 million barrels in June.The volume fell from 1.57 million barrels the previous month to the lowest level in a year.The slowdown coincided with plant maintenance work in June at a key Group II base oils plant situated in Louisiana. The plant resumed operations in early July.US naphthenic base oils output also fell in June because of a sharp dip in production in the US Gulf coast region.Lower Group II paraffinic base oils output contrasted with a rebound in US base oils imports in June. Most of those supplies consist of Group III base oils.US imports of 1.45 million barrels in June rebounded from less than 1 million barrels the previous month to the second-highest level this year.Imports rose on the back of a surge in shipments from three major key Group III producers in the Middle East.Total supply, or output and imports combined, duly rose to 6.13 million barrels in June, up from 6.04 million barrels the previous month.Imports accounted for close to 24% of the total volume.The share rose from less than 16% in May to the highest in a year.The trend pointed to rising supplies of Group III base oils as a share of total supply.Growing domestic Group III base oils output added to the share.Maintenance work on the Group II base oils unit in June in turn cut further that product’s share of US total supply.US base oils prices reflected the rising share of Group III base oils and shrinking share of Group II base oils.The premium of US Group III base oils over Group II base oils narrowed further in June and extended its steep slide in the third quarter of the year to the lowest in more than seven years..Global premium-grade imports from Middle East rise in June
