Thailand’s April base oils output falls

Thailand’s base oils output held firm in April even as production slipped from higher-than-usual levels the previous month.

Output of 58,730 kilolitres (52,020t) in April fell by 10pc from 65,250kl in March, government data showed. But the volume held above average output of around 58,060 kl/month over the past year.

Output of 230,890kl in the first four months of the year was down 4pc from 240,600kl during the same period last year.

Thailand’s base oils output held firm even as regional Group I base oil prices struggled to keep pace with the surge in crude and diesel prices since February.

The price-weakness reflected relatively healthy supply availability in the region, partly because of weaker-than-usual demand from China.

The price-weakness contrasted with unusually high prices the same time last year when supply struggled to keep pace with demand.

Thailand’s Group I supplies have helped to meet a seasonal rebound in domestic demand since March.

High Group I base oil prices in more distant markets like Mideast Gulf and Europe have also provided alternative outlets for surplus Group I supplies.

The lower output in April mostly reflected a drop in production from IRPC’s 320,000 t/yr base oil unit to 29,910kl, from 33,150kl the previous month.