India’s base oils supply fell in February as imports slipped and domestic output dipped to a nineteen-month low.The drop in supply contrasted with steadier demand, prompting a fall in the country’s surplus base oils volumes to a four-month low.The lower surplus preceded a typical rise in India’s lube demand in the month of March.India’s imported base oils cargo prices rose strongly relative to other markets over the past month, ICIS data showed.The firmer prices reflected the disconnect between supply and demand and the need to attract additional shipments from more distant markets like the US.The country’s supply fell in February as domestic base oils output dipped to 88,000 tonnes, government data showed.The volume fell from more than 110,000 tonnes in each of the previous four months to the lowest since mid-2022.Output fell at that time because of plant maintenance work.The size of the fall in base oils output in February also pointed to production-related issues.Lower output coincided with a fall in India’s base oils imports to a four-month low.The slowdown cut India’s total supply, or output and imports combined, to less than 385,000 tonnes in February, down from more than 425,000 tonnes the previous month.Demand, or domestic consumption and exports combined, held steadier in February at more than 360,000 tonnes.The surplus of supply over demand fell in response to little more than 20,000 tonnes in February, from around 65,000 tonnes the previous month.Excluding India’s imports of very-light grade base oils, India’s supply lagged demand by more than 80,000 tonnes in February.The shortfall was the largest in five months..India’s February lube demand falls.India’s February base oils imports fall
