Thailand’s lube demand rose for a seventh month in February, curbing the volume of base oils supplies available for shipment to overseas markets.The sustained rise in lube demand coincided with a dip in Thailand’s base oils output since late last year and especially during the first two months of 2024.Firmer demand for domestic base oils supplies and tighter availability triggered a drop in shipments available for export.Tighter supply coincided with a slump in base oils exports from Japan since the fourth quarter of last year.Asia's Group I base oils supply tightened in response.The region’s firmer Group I base oils prices reflected the tighter fundamentals.Group I heavy-neutrals prices rose strongly relative to gasoil and relative to Group II prices late last year and early this year, ICIS data showed.The trend incentivized blenders to adjust their formulations to use more Group II base oils instead.Thailand’s lube consumption of 40,000 kilolitres (35,500 tonnes) in February rose by 1% from year-earlier levels, government data showed.A 3% rise in consumption of passenger-car engine oils countered a 2% drop in demand for heavy-duty engine oils.The country's lube consumption typically then peaks each year in the month of March before slowing over the following months.PTT Oil and Retail (PTT) was the country’s largest lube supplier in February for a second month. PSP Specialties was the second largest and Shell the third largest.PTT and Shell had previously been the largest or second largest lube suppliers every month for at least the past two years.Thailand’s base oils consumption from domestic suppliers rose more strongly than the country’s lube demand.Consumption of 12,000 kilolitres rose by 15% from year-earlier levels to a four-month high.Consumption rose even as Thailand’s domestic base oils production held at its lowest levels in January and February in more than a year.Strong domestic demand and low domestic supply cut export volumes to around 22,000 kilolitres in the first two months of the year combined.The volume was down from close to 50,000 kilolitres during the same period a year earlier..Thailand’s February base oil supply falls
