US base oil production up 30pc in March on year
US base oil and lubricant production in March rose by 30pc from year-earlier levels as refiners faced more pressure to prioritize output over competing fuels.
Base oil and lubricant output was 165,290 b/d in March, up by 30pc from 127,129 b/d a year prior, according to the US Energy Information Administration (EIA). Production fell by 1.2pc from 167,379 b/d in February.
Total base oil and lubricant production was 5.12mn bl in March, the highest output since 5.22mn bl in June 2022.
Production rose from year-earlier levels as domestic values for US Gulf coast (USGC) diesel were more than 10¢/USG lower than 2023 levels.
This pushed refiners to maximize base oil output in March 2024 even as more base oil volumes were pushed into the export market.
Base oil exports totaled 4.7mn bl in March, more than double the domestic consumption of 2.3mn bl.
Base oil production in March fell from the prior month as some refiners worked to increase output of Group III base oils, which lowers the overall base oil yield compared with Group II production.
US paraffinic base oil production in March was 140,355 b/d, down by 1pc from 141,793 b/d in February. Production rose by 33pc from 105,710 b/d a year prior.
USGC paraffinic production rose to 3.93mn bl in March, up from 3.27mn bl in February. Output in the Texas Gulf coast rose to 1.63mn bl from 1.54mn bl in February. Production in the Louisiana Gulf coast rose to 1.59mn from 1.54mn bl.
Paraffinic base oil production in the US Midcontinent in March 190,000 bl, down from 218,000 bl in February. Production in the US Atlantic coast (USAC) was 188,000 bl, up from 174,000 bl.
US naphthenic base oil production in March fell from February levels on some unplanned maintenance at a key refinery. Production rose from year-earlier levels on firming margins and strong demand, particularly for low-viscosity naphthenic grades.
March naphthenic base oil production was 24,935 b/d, down by 2.5pc from February levels of 25,586 b/d. Production was up by 16pc from year-earlier levels of 21,419 b/d. Total naphthenic production was at its highest since September.
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