Base oil production in the United States was about flat in May, compared to the same month of 2023. Meanwhile base oil imports dropped to one of the lowest levels since early in the COVID-19 pandemic.
The nation’s petroleum refiners churned out 5.08 million barrels of mineral base stocks in May, barely up from 5.06 million barrels 12 months earlier. Through the first four months of the year output was running at its highest level since before the pandemic, but now 2024 is running slightly behind 2022, 24.5 million barrels compared to 24.9 million barrels.
Production of paraffinic base oils dipped slightly to 4.25 million barrels in May versus 4.75 million barrels in May of 2023. Output of naphthenic base oils rose a tad, from 783,000 barrels to 826,000 barrels.
Base oil imports dropped 35% year to year to 961,000 barrels, the third-lowest level since the start of 2021 and just the fourth month below a million barrels since the fourth quarter of 2020. Imports from South Korea were up slightly from April to 170,000 barrels but were still the fifth-lowest quantity from that country in the past three years.
Canada was the only main source country to boost its shipments, which amounted to 318,000 barrels, fourth highest since mid-2021 and up from 278,000 barrels in May of 2023. Imports from Qatar fell to 310,000 barrels, from 416,000 barrels a year earlier.
The U.S. exported 3.5 million barrels of base oil in May, down 14% year to year but still a solid number. More than a third of that total – 1.4 million barrels – went to Mexico, almost the exact amount as in May of 2023. Canada, Brazil and Belgium were the next-biggest receivers at 396,000 barrels, 323,000 barrels and 224,000 barrels, respectively.
The U.S. imports mostly API Group III base oils and is one of the world’s largest base oil exporters.