Corrects paraffinic base oil output and base oil products supplied in story published 1 December.
US base oil output declined 8pc in September from year-earlier levels to 156,700 b/d, according to the Energy Information Administration (EIA) data, driven by a fire at a Louisiana blending facility.
- Smitty's Supply experienced a fire at its Roseland, Louisiana, blending facility in late-August that limited a portion of base oil offtake. The fire decreased September base oil production by 12pc from August levels.
- Many US refiners were building inventories ahead of Excel Paralubes' 22,200 b/d refinery turnaround in Westlake, Louisiana, to offset potential limited availability. Other producers had sufficient hurricane inventories to rely on.
- September paraffinic base oil output was 144,830 b/d, down by 0.2pc year over year and down by 5.7pc from August levels of 153,550 b/d.
- Base oil products supplied, a proxy for domestic demand, rose 29pc from a year earlier and 5.6pc from August levels, according to EIA data. Demand was elevated for September because Ergon's 25,000 Group I/II refinery in Vicksburg, Mississippi was down for its planned turnaround and Excel Paralubes was preparing for its early October maintenance.
- US base oil production declined in the Gulf coast, Texas Gulf coast and midcontinent regions because of several refiners were limiting spot offers in order to keep inventory levels balanced during turnarounds.
- Naphthenic base oil output fell by 53pc year over year to 11,480 b/d, and by 54pc from August levels of 24,970 b/d. Naphthenic levels dropped mainly because Ergon's naphthenic unit was also down for turnaround in September, which kept supplies limited despite firm demand for most naphthenic grades.
- September EIA export data was estimated using August totals because recent Census trade data is unavailable following the partial US government shutdown. Monthly export numbers are unchanged because of the lack of new data.
| Paraffinic base oil output by region | b/d | ||
| 25-Sep | 25-Aug | m-o-m±% | |
| US Gulf coast | 110,670 | 119,900 | -8 |
| Texas Gulf coast | 44,870 | 53,580 | -16 |
| Louisiana Gulf coast | 60,830 | 58,550 | 4 |
| US Midcontinent | 7,270 | 8,840 | -18 |
| US Atlantic coast | 5,670 | 5,230 | 8 |
| Paraffinic total | 153,550 | 148,550 | 3.3 |
| Energy Information Administration (EIA) | |||
