US base oil exports to Mexico edged higher in February, even as its total shipments fell.

Base oil exports of 592,510bl (83,450t) to Mexico in February rose 7pc from 552,840bl the previous month, government data showed.

The volume was the second highest since January 2021 and up from more typical levels of around 512,000 bl/month over the past year.

The pick-up in shipments coincided with an increasingly narrow gap between US base oil and diesel prices. It also came at a time of year when US producers continued to clear surplus supplies that they had carried over from the previous year.

Mexico is reliant on overseas markets for almost all of its base oil supplies. The US typically accounts for at least 95pc of those supplies.

Some of the supplies are used to produce lubricants. Some of the supplies are used as a fuel extender.

The shrinking premium of US base oil prices to diesel prices since late last year has coincided with a pick-up in shipments to Mexico.

US exports of 1.75mn bl to Mexico in the three months to February rose by more than 35pc from less than 1.30mn bl during the previous three months.