Thailand’s May output edges down

Thailand’s base oils output fell to a three-month low in May even as regional Group I base oils values extended their rise versus diesel prices.

Base oils output of 55,310 kilolitres (48,990t) in May fell from 56,330kl the previous month and by 9pc from year-earlier levels, government data showed.

The fall in output for a third month from year-earlier levels cut total supply to 282,470kl in the first five months of the year.

The volume fell by more than 9,400kl from 291,900kl during the same period last year.

Output fell even as Asia Group I prices rose in May to their widest premium to diesel since end-2021.

But Thailand’s domestic base oils demand fell even more steeply than output, dipping by more than 13,300kl in the first five months of the year.