Thailand’s Sept base oils output falls

Thailand’s base oils output fell to a seven-month low in September as unusually weak Group I base oils margins incentivized refiners to prioritize production of other products like middle distillates.

Base oils output of 50,900 kilolitres in September (45,000t) fell from close to 57,000kl the previous month, government data showed.

The lower output left total production of 503,100kl in the first nine months of the year almost the same as year-earlier levels.

The drop in output in September followed a fall in Asia Group I light and heavy-neutrals prices to steep discounts to regional gasoil prices throughout most of the third quarter of the year, ICIS data showed.

Base oils margins weakened even amid a smaller-than-usual build-up of surplus base oils supplies in Asia during the summer months.