India’s base oils imports climbed to a ten-month high in March on the back of a pick-up in shipments from South Korea and the Middle East.Total imports of more than 355,000 tonnes in March rose from less than 295,000 tonnes the previous month, provisional customs data showed..The imports were well above typical volumes of less than 320,000 tonnes/month over the past year.The higher import volumes helped to cover for a seasonal rise in domestic lube demand in the month of March and limit the size of a drawdown of blenders’ stocks.A smaller stock-drawdown curbed the volume required and urgency to replenish the depleted inventories at the start of the second quarter of the year.This month’s drop in crude oil prices added to the attraction of slowing stock-replenishment plans for supplies used to produce lubricants.This months’ drop in crude oil prices, and India’s steady domestic diesel prices, could conversely trigger a pick-up in demand for overseas supplies of very-light grade base oils.Imports of very-light grades already rebounded in March to a six-month high of more than 135,000 tonnes.Supplies got a boost from a pick-up in shipments from South Korea and Qatar especially.The rise in shipments in March coincided with domestic retail diesel prices that remained at a higher-than-usual premium to CFR India Group II very-light-grade prices.A wider diesel premium to crude oil and especially light-grade base oils prices typically coincides with firm demand for very-light grade base oils.The diesel premium to crude oil and the diesel premium to CFR India light-grade prices typically follow a similar trend.The diesel premium to crude oil widened sharply in April following the slump in crude oil prices.The trend raised the prospect of the diesel premium to light-grade prices also widening in the coming weeks.Such a scenario could support additional buying interest in very-light grade base oils from overseas markets..India’s March lube demand rises.US’ February base oils exports rise.S Korea’s March base oils exports fall
India’s base oils imports climbed to a ten-month high in March on the back of a pick-up in shipments from South Korea and the Middle East.Total imports of more than 355,000 tonnes in March rose from less than 295,000 tonnes the previous month, provisional customs data showed..The imports were well above typical volumes of less than 320,000 tonnes/month over the past year.The higher import volumes helped to cover for a seasonal rise in domestic lube demand in the month of March and limit the size of a drawdown of blenders’ stocks.A smaller stock-drawdown curbed the volume required and urgency to replenish the depleted inventories at the start of the second quarter of the year.This month’s drop in crude oil prices added to the attraction of slowing stock-replenishment plans for supplies used to produce lubricants.This months’ drop in crude oil prices, and India’s steady domestic diesel prices, could conversely trigger a pick-up in demand for overseas supplies of very-light grade base oils.Imports of very-light grades already rebounded in March to a six-month high of more than 135,000 tonnes.Supplies got a boost from a pick-up in shipments from South Korea and Qatar especially.The rise in shipments in March coincided with domestic retail diesel prices that remained at a higher-than-usual premium to CFR India Group II very-light-grade prices.A wider diesel premium to crude oil and especially light-grade base oils prices typically coincides with firm demand for very-light grade base oils.The diesel premium to crude oil and the diesel premium to CFR India light-grade prices typically follow a similar trend.The diesel premium to crude oil widened sharply in April following the slump in crude oil prices.The trend raised the prospect of the diesel premium to light-grade prices also widening in the coming weeks.Such a scenario could support additional buying interest in very-light grade base oils from overseas markets..India’s March lube demand rises.US’ February base oils exports rise.S Korea’s March base oils exports fall
