Brazil’s Base Oil Production Remains Strong

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Brazil’s Base Oil Production Remains Strong

Brazil’s base oil production grew 68% in June and 26% in the first half of this year, compared to the same periods in 2020, and the volumes reached near those of the same periods in 2019, suggesting production recovery to near pre-pandemic levels.

The South American country’s base oil production – mainly API Group I – rose to 47,000 metric tons in June, growing from 28,000 tons in the same month in 2020, though remaining 19% below the 58,000 tons mark set in June 2019, according to data released by the National Agency of Petroleum, Natural Gas and Biofuels, ANP.

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For the six-month period from January through June, base oil production reached 275,000 tons, compared with 218,000 tons during the first half of last year and just 2% below the 281,000 tons produced during the first six months of 2019.

Brazil imported 55,000 tons of base oil in June – the lowest in a month this year – down slightly from 56,000 tons in the same month in 2020, and down 29% from 77,000 tons in June 2019.

The volume of base oil imported by Brazil in the first half of this year – 542,000 tons – is 61% higher than in the first half of 2020 and 75% higher than in the same period of 2019. However, this year’s first-half total mainly reflects large volumes of base oil imports in February and March this year, of 138,000 and 135,000 tons, respectively.

Before the COVID-19 pandemic struck, Brazil’s volumes of imported base oil were similar to the amount it produced, but imports rose as domestic output dropped during 2020.

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