Asia’s surplus of base oils supply over regional demand widened in July as output rose and demand fell.
The size of the surplus was still relatively small as regional supply stayed lower than usual.
The surplus of supply over demand widened to more than 135,000t in July, up from less than 100,000t the previous month.
The surplus fell from more than 180,000t during the same month last year and lagged year-earlier levels for the fifth time in six months.
The trend left the surplus of little more than 410,000t in the three months to end-July down from more than 620,000t during the same period last year.
Last year’s larger surplus triggered a slump in base oils prices in the third quarter of 2022 and a subsequent wave of arbitrage shipments to markets like Latin America and Africa.
This year’s smaller surplus curbed the pressure on refiners to repeat those moves.