Thailand’s base oils supply rose in October as domestic production climbed close to the highest in almost two years.The country’s base oils output of 60,700 kilolitres (54,000 tonnes) in October rose from less than 55,000 kilolitres the previous month, government data showed.Base oils production rose mostly because a jump in Thai refiner IRPC’s output to the highest level in more than a year.Thailand's total output volume was up from typical levels of less than 52,000 kilolitres/month in the past year. It exceeded the 60,000 kilolitres/month level for just the second time since the beginning of 2023.The rise in supply coincided with a recovery in Japan’s base oils output in October and signs of improving availability of Group I base oils supply from Indonesia.All three markets are key sources of Group I base oils in the Asia-Pacific region.The rise in the region’s Group I base oils supply tapped increasingly firm margins for heavy-grade base oils, especially for brightstock.The premium of FOB Asia brightstock prices over Singapore gasoil extended its rise in November to the highest level in more than three years.The rise in brightstock margins reflected persistently tight availability of the product following the closure of several Group I base oils units in Japan in recent years.The closure of a key base oils unit in China in October added to the tighter availability of Group I base oils in the region.The rise in base oils output in markets like Thailand and Japan in October cushioned but was insufficient to reverse the trend of tightening Group I base oils supply.Tighter supply in turn added to the incentive and need for Asia’s blenders to increase their consumption of premium-grade base oils instead.An ongoing rise in Thailand’s base oils imports reflected that trend.The country’s base oils imports of close to 30,000 kilolitres in October rose from year-earlier levels for a sixth straight month.Most of the overseas shipments originated from South Korea and Singapore. Both markets are key sources of premium-grade base oils..Japan’s October base oils output rises.Singapore’s Oct base oils imports rise
