Japan’s base oils output edged down in July even as refinery run rates surged as producers focused on maximizing output of middle distillates.Base oils output of 194,450 kilolitres (150,850t) in July fell from 198,010kl the previous month, government data showed.Output rose for a fourth-straight month from year-earlier levels, lifting total production to 1.29mn kl in the first seven months of the year. The volume was up 3pc from year-earlier levels of 1.25mn kl.Base oils supply fell in July even as Japan’s refined products output rebounded to a four-month high of 12.09mn kl. Output rose as the country’s refiners steadily boosted run rates in July and extended that trend in August..Run rates rose as refiners focused on producing more middle distillates. Diesel and jet fuel combined accounted for some 37pc of total refined products output in July. The share was up from 36pc in June and less than 30pc at the start of the year. It was the highest in more than two years.Refiners’ focus on producing more middle distillates reflected strong demand and high prices for the products. The more limited attraction of producing base oils reflected the more muted demand and weak prices for the product, especially relative to diesel and jet fuel.The moves mirrored a similar trend in other markets in Asia, Europe, and the Americas..UK's June base oils output stays low.Japan’s production of mostly Group I base oils also contrasted with rising consumption and higher prices for Group II and Group III supplies.Japan’s base oils output is set to fall sharply over the coming months because of a pick-up in plant maintenance work and the scheduled closure of one plant by the end of the third quarter..Japan’s June base oils output rises
