Asia’s March base oils surplus rises

The surplus of Asia-Pacific base oils supply over demand rose in March to its widest in seven months and contrasted with a shortfall the same time a year earlier.

The surplus of supply over demand rose to more than 250,000t in March, from less than 100,000t the previous month.

The surplus widened even as Asia-Pacific lube demand rose in March to a one-year high.

Supply rose even more sharply.

The rise in regional supply also outpaced firm base oils exports in March.

The trend pointed to plentiful availability at a time when rising base oils margins incentivized refiners to increase base oils production.

Margins extended their rise in April and May.