US’ January base oil exports extend rise

US base oil exports rose in January to a five-month high amid a pick-up in shipments to India especially. Exports to Africa also held firm.

Base oil exports rose to 1.84mn bl in January, according to US Census Bureau data. The volume rose from 1.81mn bl the previous month to the highest since August.

US base oil exports rebounded from late last year following a sharp slump in shipments at the end of the third quarter. Exports rose as producers sought to clear a large volume of surplus supplies, especially of very-light grade base oils.

Lower prices also boosted the competitiveness of the supplies and made feasible arbitrage opportunities to outlets like India.