Thailand/Japan base oils supply lags demand

Base oils supply lagged demand in Japan in March for the first time in six months and in Thailand for a third month even as the countries’ base oils output rose.

Base oils supply in Japan lagged demand by almost 3,000 kilolitres (2,610t) in March as strong domestic demand and export volumes outpaced a rise in base oils output to an eight-month high.

Supply lagged demand in Thailand by more than 2,000kl in March, that followed a more than 12,000kl shortfall in February.

Supply lagged demand even as domestic base oils production and imports combined rose to a seven-month high.

Demand rose even more strongly to the highest in more than eight years amid strong sales in the domestic and overseas markets.