01/07/2022
Thailand May base oils output edges up
Thailand’s base oils output edged higher in May amid strong domestic demand and firm buying interest in regions outside Asia-Pacific.
Base oils output of 61,000 kilolitres (47,320t) rose by 4pc from 58,730kl the previous month and held above average levels of 58,100 kl/month over the past year, government data showed.
Production of 291,900kl in the first five months of the year was down just 4pc from 303,080kl during the same period last year.
The lower output mostly reflected a dip in production in February because of scheduled plant maintenance work.The country’s base oils output has held firm even with regional prices at much weaker levels compared with the same time a year ago.
Last year’s high prices reflected unusually tight base oils supply and strong demand in the Asia-Pacific region, especially during the first half of the year.
Prices have been lower this year, especially relative to crude and diesel, amid more balanced supply-demand fundamentals in the region.
Thailand’s base oil supplies have instead tapped stronger domestic demand and overseas buying interest in more distant outlets like Mideast Gulf.
Even so, the price weakness of the supplies and the strength of regional diesel prices incentivized refiners to cut base oils output and produce more middle distillates instead.
Source from Baseoilnews
