Japan’s base oils and lube output fell to an eleven-month low in January, reversing some of the surge in regional production the previous month.The rise in Asia-Pacific base oils output in December and subsequent increase in exports in January contrasted with muted Chinese demand..Asia's December base oils supply rises.Slower Chinese demand forced more supplies to move to other markets like southeast Asia and India.The healthy availability of supplies and cautious demand kept pressure on regional base oils prices.Japan’s refiners focused instead on production of oil products for which demand was stronger during the winter months, such as jet fuel and kerosene.The drop in Japan’s base oils production in January preceded a round of plant maintenance work throughout the Asia-Pacific region in the coming months, including in Japan.Any sustained slowdown in output, combined with the upcoming maintenance work, would curb Japan’s availability of supplies for overseas markets like Singapore.The country’s base oils and lube output of close to 191,000 kilolitres (169,200t) in January fell from almost 230,000kl the previous month, government data showed..The volume fell from typical levels of more than 210,000 kl/month over the past year to the lowest since February 2022.Base oils output had stayed unusually high since then because of high refinery run rates and an unusually light round of plant maintenance work last year.Output stayed firm even after the permanent closure of a Group I base oils plant in the country at the end of the third quarter of last year.Base oils production is likely to be lower this year because of a heavier round of plant maintenance and the closure of another Group I base oils plant later in the year.The closure of the two plants has raised concern about tighter availability of Group I supplies in the Asia-Pacific region.A drop in supplies would impact Singapore especially. Japan’s base oils exports to the island-state surged over the past year..Spore’s January exports to SE Asia slip
