South Korea’s base oils exports to the US rose in October to the second-highest level this year, adding supplies to the US market just when demand faced a seasonal slowdown.The wave of shipments, along with the delivery of large volumes from the Middle East, complicated moves in the US to limit a build-up of surplus supplies during the final months of the year.South Korea’s base oils exports of 77,500 tonnes to the US in October were up from less than 38,000 tonnes the previous month and down from close to 83,000 tonnes in August, government data showed.The rise in shipments in August was a key factor behind a surge in US base oils imports in September to the highest in almost five years.The rise in base oils imports coincided with simultaneous moves to clear surplus supplies from the US market through high export volumes.The US’ net exports in September instead fell to a seventeen-month low.The similar rise in South Korea’s base oils shipments to the US in October raised the prospect of repeating that scenario in November.The northeast Asian country’s shipments rose despite US Group III prices holding at a steep discount to Group III prices in Europe since the start of the second quarter.But that discount began to narrow sharply since the beginning of October amid signs of plentiful supplies in Europe.The rise in South Korea’s exports to the US contrasted with a fall in shipments to Latin America to the lowest level in more than two years.Base oils exports of around 1,500 tonnes to the region in October fell from more than 5,000 tonnes in each of the previous four months to the lowest since mid-2022.Shipments slowed after the premium of US Group II export prices to FOB Asia prices began to narrow from first-half September.The narrower premium complicated the trans-Pacific arbitrage.US Group II prices continued to fall faster than Asia prices over the following weeks, cutting their premium in November to the narrowest since May.The narrower premium was likely to curb any imminent revival in arbitrage shipments from Asia to Latin America..S Korea’s October base oils exports rise.S Korea’s Oct exports to India/UAE rise.US’ September base oils imports surge.Europe’s Sept Group III supply falls
