June marked a notable downturn in US base oil exports to Europe, hitting a four-month low due to disruptions in supply from major sources. Government data revealed that base oil exports reached 191,870 barrels (27,020 metric tons), a significant drop from the previous month's figure of over 690,000 barrels.

Interestingly, May registered the highest volume in ten months, making the subsequent decrease even more pronounced. The June figure, which represented the lowest since February, contributed to a total second-quarter export volume of 1.25 million barrels.

Comparing this quarterly volume to the same period last year, it was evident that there had been a substantial decline of 27%. Notably, this marked the fourth consecutive quarter with such a decrease.

Further analysis showed that base oil exports to Belgium during June amounted to 154,320 barrels, a noticeable fall from over 530,000 barrels recorded the previous month.

This downward trend was driven by a simultaneous decline in shipments from key districts, notably San Francisco and Mobile, Alabama, which hit their lowest level since December. Moreover, New Orleans experienced its first pause in shipments in four months.

The export landscape painted a mixed picture, as while some sources faltered, there was an uptick in flows from alternative suppliers. June's total exports, amounting to 1.70 million barrels (239,000 metric tons), exhibited a decrease from the previous month's record high of nearly 2.70 million barrels. However, the first half of 2023 displayed an overall positive trajectory, with total shipments reaching 12.48 million barrels. This marked an 11% increase from the 11.29 million barrels recorded during the same period the previous year, setting a new record high.

The June decline in exports to Europe mirrored the aforementioned slump in combined shipments from San Francisco and Mobile, Alabama, which dipped to around 200,000 barrels. This marked a significant drop from the previous month's figure of over 750,000 barrels and marked the lowest point for the year.

On a more positive note, the decline was mitigated to some extent by an increase in shipments from the districts of Houston-Galveston and Port Arthur. Combined exports from these two districts reached over 750,000 barrels in June, marking a fifteen-month high and signalling a potential shift in the export landscape.

About Base Oil: Base oil serves as a crucial ingredient in the production of various items, encompassing lubricating greases, motor oil, and metal processing fluids. The specific requirements for these diverse products translate into the need for varying oil compositions and attributes. Of notable significance is the viscosity of the liquid across different temperature ranges. The adaptability of a given crude oil for conversion into a base oil hinges on the concentration of base oil molecules and the ease of their extraction.