Japan’s June base oils output stays lower

Japan’s base oils output stayed lower in June for a second month amid ongoing plant maintenance work.

Output of 203,340 kilolitres (180,120t) in June edged up from 201,110kl the previous month, government data showed.

Output fell by 17pc and for a third month from year-earlier levels.

The slowdown cut production to 1.21mn kl in the first half of the year, down 3pc from 1.25mn kl during the same period last year.

Output got support from steady overseas demand in southeast Asia and from strong base oils prices relative to crude and diesel during the second quarter of the year.

Base oils as a share of Japan’s total refined products output rose to more than 2pc of the total in June. The share rose from 1.8pc in April and May to the highest in a year.