S Korea’s Nov exports to US edge down

South Korea’s base oils exports to the US edged down in November from the previous month, adding to signs of a slowdown in total shipments reaching the US in the month of December.

A drop in overseas cargoes reaching the US this month would follow a likely jump in the country’s imports in November.

Lower imports would help to curb the size of a build-up of surplus supplies at year-end.

South Korea’s base oils exports of 69,000 tonnes to the US in November fell from more than 77,000 tonnes the previous month, government data showed.

The November volume was still the third highest this year.

The highest volume was in August and second-highest in October, reflecting the sharp pick-up in South Korea’s base oils exports to the US during the second half of the year.

The November shipments were set to reach the US in December and January, curbing their impact on total US imports this month.

There were also signs of a slowdown in shipments from the Middle East set to reach the US this month compared with November.

South Korea’s exports to other countries in the Americas held at less than 2,000 tonnes in November for a second month.

The volumes were the lowest since mid-2022 and coincided with a less feasible arbitrage from Asia to the Americas from the end of the third quarter of the year.

The dip in shipments left markets in Latin America even more reliant on supplies from the US to cover their requirements.

That reliance, and lack of additional supplies from markets like Asia, could sustain firmer demand for US shipments in the fourth quarter and early next year.

Any such pick-up in demand early next year would also coincide with a likely seasonal rise in Latin America’s lube consumption, adding to the region’s requirements.

Such a scenario would provide a welcome fillip for US refiners that often face pressure from rising surplus supplies in the first few weeks of the new year.