Petrobras News Agency
Americas

Brazil’s May base oils output rises

Iain Pocock

Brazil’s base oils output rose in May to a six-month high, coinciding with signs of a sustained recovery in the country’s lube consumption.

Base oils output of 50,450mᶟ (44,690t) in May rose from 46,070mᶟ the previous month to the highest since November, government data showed.

Production still fell from year-earlier levels for a sixth month. The trend left output of 239,410mᶟ in the first five months of the year down 15pc from 282,780mᶟ during the same period last year.

The slowdown in output since the fourth quarter of last year had coincided with a sustained dip in the country’s lube consumption throughout the second half of the year.

The pick-up in output in May has similarly followed an improvement in lube demand since March.

Surging global base oil prices and tighter availability from the key US market have added to the attraction of covering more requirements with domestic supplies.

An even stronger rise in diesel prices incentivizes refiners to produce more middle distillates rather than base oils. Any such move has so far shown little sign of materializing in several markets, including Brazil.

Base oils output rose in May in all three of Petrobras’ base oil plants.

Production at the 66,000 t/yr Lubnor plant rose in May to a 10-month high of 6,310mᶟ.

Output at the 90,000 t/yr Rlam plant climbed to a six-month high of 2,580mᶟ. Output edged up slightly at the 576,000 t/yr Reduc plant to 41,550mᶟ.

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