Thailand’s Feb base oil output falls

Thailand’s base oil production fell in February to a five-month low, raising uncertainty about the timing of scheduled plant maintenance work in the country.

Base oils output fell to 45,980 kilolitres (40,730t) in February, down from almost 61,000kl the previous month, government data showed.

The volume was the lowest since last September and second-lowest since May 2020.

The lower output reflected a sharp drop in production from one of the country’s two Group I base oil producers to a 21-month low.

Output from the other producer slipped to a 24-month low, although the size of the drop was smaller.

Thailand has some 580,000 t/yr of Group I base oil production capacity.

Regional buyers had been anticipating a drop in base oil supply from Thailand because of scheduled plant maintenance work in the month of March.

The earlier-than-expected fall in output coincided with a drop in Thailand’s base oil exports in February to a four-month low.