Brazilian refiners continued making base oil at a steady pace in September, churning out 49,000 kiloliters, according to the latest data from the country’s National Agency on Petroleum, Natural Gas and Biofuels.
Meanwhile base oil imports reached their second-highest level of the year, 116,591 kL. Both measurements continued running ahead last year’s pace.
Brazil is by far the biggest finished lubricant market in South America and second largest in the Western Hemisphere behind the United States. It is also South America’s largest base oil producer but imports more than half of its base oil demand.
September’s base oil output of 49,000 kL (44,000 metric tons) was 96% than the 25,000 kL refiners produced in the same month of 2023. The country’s domestic base oil production was more volatile last year, ranging between 23,000 kL and 56,000 kL. This year monthly output has ranged between 44,000 kL and 64,000 kL.
Year-to-date base oil production is 480,000 kL, up from 415,000 kL during the same period last year.
Base oil imports in September were 112% higher than the 55,021 kL imported 12 months earlier – the latter number having been the lowest monthly level for 2023. Through the first three quarters of the year, the country imported 720,762 kL of base oil, up 16% from 621,996 in the same period last year.
The largest share of Brazil’s base oil imports are API Group II fluids from the U.S.
Brazil exported 8,223 kL of base oil in September, compared with 6,351 kL in the same month of 2023.