Thailand’s base oils demand rose to a three-month high in November as a rebound in exports balanced out weaker domestic lube consumption.The pick-up in exports provided a welcome boost to Asia’s Group I base oils supply after a raft of plant closures in recent years slashed surplus availability in the region.Asia Group I brightstock base oils prices are holding close to a three-year high relative to Singapore gasoil prices, reflecting the ongoing tightness of heavy-grade supplies especially.Thailand’s base oils exports of 36,000 kilolitres (32,000 tonnes) in November rose from 21,300 kilolitres the previous month, ministry of energy data showed.The volume was the highest since August and second-highest in fifteen months.Exports to Singapore exceeded the 20,000 kilolitre-level in November for just the second time in more than two years.Exports of more than 3,500 kilolitres to India in November were the largest volume in fourteen months.Shipments to the Middle East stayed low, even with the pick-up in Thailand’s total base oils exports.The ongoing dearth of shipments to the region contrasted with 2023, when a wave of cargoes moved from Thailand to the UAE.Higher total exports and low volumes to the Middle East reflected stronger demand within Asia, slashing availability for other regions. Demand rose following the closure of two base oils plants in Asia since the fourth quarter of 2023, cutting the region’s total Group I supply.Higher exports contrasted with a drop in Thailand’s lube demand in November for a fourth straight month.Demand fell as sliding engine oils consumption outweighed stronger consumption of other lubricants.Thailand’s total base oils demand, or domestic consumption and exports combined, still rose to close to 89,000 kilolitres in November, up from less than 71,000 kilolitres the previous month.The volume outpaced total supply for the first time in three months, cutting any build-up of surplus volumes in the final months of last year. .Thailand Nov base oil supply holds firm.Global exports to Middle East rise in Oct.Base Oil News stories and analyses also available on the ICIS platform
