South Korea’s base oils output rose to a six-month high in November, contrasting with a dip in the country’s base oils exports to a four-month low.The disconnect raised the prospect of a pick-up in exports during the final weeks of 2023 and early this year to avoid a build-up of surplus supplies.South Korea’s exports duly showed signs of rising in December from the previous month, shipping data showed.The country’s base oils output of 2.73mn bl (385,000t) in November rose from 2.69mn bl the previous month to the highest since last May, industry data showed.Maintenance work on a key base oils plant began in May 2023, prompting a sharp fall in South Korea’s output over the following two months.The rise in South Korea’s base oils output in November contrasted with lower diesel production. It coincided with increasingly firm base oils prices relative to feedstock and competing fuel prices.The premium of Asia Group II base oils prices over regional gasoil prices averaged more than $140/t in November, ICIS data showed.The premium flipped from a discount to gasoil as recently as August and provided a growing incentive for refiners to boost base oils output..S Korea’s Nov base oils exports fall
South Korea’s base oils output rose to a six-month high in November, contrasting with a dip in the country’s base oils exports to a four-month low.The disconnect raised the prospect of a pick-up in exports during the final weeks of 2023 and early this year to avoid a build-up of surplus supplies.South Korea’s exports duly showed signs of rising in December from the previous month, shipping data showed.The country’s base oils output of 2.73mn bl (385,000t) in November rose from 2.69mn bl the previous month to the highest since last May, industry data showed.Maintenance work on a key base oils plant began in May 2023, prompting a sharp fall in South Korea’s output over the following two months.The rise in South Korea’s base oils output in November contrasted with lower diesel production. It coincided with increasingly firm base oils prices relative to feedstock and competing fuel prices.The premium of Asia Group II base oils prices over regional gasoil prices averaged more than $140/t in November, ICIS data showed.The premium flipped from a discount to gasoil as recently as August and provided a growing incentive for refiners to boost base oils output..S Korea’s Nov base oils exports fall