India’s imports of very-light grade base oils rose to a four-month high in November amid a surge in shipments of 2cst supplies.Total imports of 2cst and 3cst base oils combined rose to more than 117,000t in November, provisional customs data showed.The volume rose from around 100,000t the previous month and by 20pc from year-earlier levels.The pace of the increase lagged the 37pc rise in India’s total base oils imports in November.Their 33pc share of India’s total base oils imports also fell from typical levels of 36pc in the first ten months of this year and from a 40pc share in 2022.Their smaller share of India’s total imports coincided with an increasingly squeezed premium of India’s retail diesel price over imported prices for very-light grade base oils.The premium fell to a one-year low of less than $300/t in October, down from closer to $400/t in first-half 2023 and from more than $600/t in early 2022. The wider diesel premium previously coincided with higher-than-usual imports of very-light grade base oils.India is a key outlet for surplus supplies of very-light grade base oils.That role could grow over the coming months amid expectations that US refiners will need to find an alternative outlet instead of Mexico for surplus supplies of light-grade base oils.Any pick-up in India-bound light-grade shipments of US origin could add to competition and pressure on prices for the supplies.Lower light-grade prices would widen their discount to India’s retail diesel prices, raising the prospect of stronger demand.Lower light-grade prices would also squeeze overseas refiners’ margins, boosting their incentive to cut run-rates or redirect the supplies back into the diesel pool..India’s Nov base oils imports rise
