US base oils exports to Latin America rose in July to the fourth-highest level in the past five years amid a pick-up in shipments to Brazil and Argentina.

The high volume also reflected a surge in total US base oils exports in July to their third-highest level in more than four years.

A shrinking share of that volume moved to Latin America.

Base oils exports to Latin America, excluding Mexico, rose to 579,200bl (81,580t) in July, government data showed. The volume was up from 538,340bl the previous month and 14pc higher than year-earlier levels.

Total exports of 3.46mn bl to the region in the first seven months of the year were up 5pc from 3.29mn bl during the same period last year.

The 8pc rise in July shipments from the previous month lagged the 32pc rise in total US exports in July. More of the additional supplies moved instead to Europe.

The more muted rise in shipments to Latin America coincided with slowing lube demand growth in key markets like Brazil and Argentina.

Lube demand in other markets in the region also faced pressure from high inflation and rising interest rates.

US base oils exports of almost 25,000bl to Argentina in July were the second highest in 10 months. The rise in shipments coincided with lower-than-usual base oils production in the country in June and July.

Even with the increase in shipments, total US exports of less than 68,500bl to Argentina in the first seven months of the year were down from more than 113,000bl during the same period last year.

Surplus US base oils supply has been limited since the second quarter of this year as unusually high exports helped to meet strong overseas demand.

That dynamic faces the prospect of change amid a slowdown in demand in markets like Latin America.