India’s imports of very-light grade base oils rose in February even as the country’s total imports fell.The diverging trends boosted very-light grade base oils’ share of India’s total imports to the second-highest level in eight months.It also cut India’s total imports, excluding very light grades, to the second-lowest level in nine months.The lower imports preceded a seasonal rise in India’s lube demand in March.The combination of lower supply and firmer demand could trigger moves to replenish stocks over the coming weeks.India's imports of very-light grade 2cst and 3cst base oils rose to more than 105,000t in February, provisional customs data showed.The volume rose from around 85,000t the previous month mostly because of a surge in shipments of 2cst base oils originating from South Korea.The rise in shipments countered a slowdown in supplies from other regular sources like UAE and Qatar.Imports rose even with a slide in the premium of CFR India N70 prices over regional gasoil prices in December 2023 and January 2024.The premium fell close to levels that boosted the incentive for overseas refiners to cut production of very-light grade base oils.Lower outright CFR India N70 prices in December and January also widened their discount to India’s domestic retail diesel prices.The discount to retail diesel prices duly held close to its widest since last August.A wider discount often coincides with stronger domestic demand for very-light grade base oils.Those price dynamics began to reverse in February and March as outright CFR India N70 prices rose.The discount of N70 prices to retail diesel prices narrowed in response but was still relatively wide..India’s February base oils imports fall
