Global base oils supply held firm in December and the fourth quarter of the year, at a time when demand faced a seasonal slowdown.Supply in the Americas, Europe and Asia excluding China rose in December to a five-month high of more than 2.10 million tonnes, government and industry data showed.The volume helped to lift total supply to more than 6.20 million tonnes in the fourth quarter of the year and to more than 24.80 million tonnes in 2024.The fourth-quarter volume was up 6% from year-earlier levels. The 2024 volume was up 1% from year-earlier levels.Including China and the Middle East, supply of more than 8.30 million tonnes in the fourth quarter rose by 5% from year-earlier levels. Supply of around 33 million tonnes in 2024 rose by 3% to a two-year high. .Global base oils prices held relatively firm late last year and early this year even with the rise in supply and drop in demand.A rise in exports helped to clear a large portion of the surplus from the major production markets of US, Asia and Europe.Exports of around 4.40 million tonnes from those markets in the fourth quarter rose by 6% from year-earlier levels to the highest in almost four years.A large portion of the exports moved to outlets like Mexico and Africa.The shipments to those markets cushioned the impact of higher supply on fundamentals and prices in other regions.The dynamic left supply-demand fundamentals in those other regions relatively balanced early this year.It also highlighted the importance of markets like Mexico and Nigeria as outlets for surplus volumes, which then left refiners with more leverage over price levels in other markets.The importance of those markets is likely to grow even more this year as the start-up of new base oils production capacity adds to global supply..Asia’s December lube demand rises .UK’s December base oils output falls.Netherlands’ Dec base oils output rises.US’ December base oils supply falls
