U.S. Base Oil Output Sagged in May


U.S. Base Oil Output Sagged in May

Base oil production in the United States declined 9% in May, although the volume reached its highest in a month since last July, according to data released by a government agency on Monday.

U.S. base oil production decreased to 5.1 million barrels in May, the U.S. Energy Information Administration reported, compared to 5.5 million barrels in the same month last year. That was the highest such production volume since 5.1 million barrels in July 2022.

Historically, the 5.1 million barrels was the third-lowest production figure for May since 2009, ahead of only 5 million barrels in May 2019 and a historically low 4.1 million barrels in May 2020, which was likely due to COVID-19 pandemic impacts.

Year-to-date through May, U.S. base oil production was also down 9% to 22.5 million barrels, compared to the same period last year.

Naphthenic production in the U.S. fell 12% to 783,000 barrels in May, compared to 893,000 barrels. It marked the second consecutive month that volume topped 780,000 barrels and was the second highest volume for a month this year, behind 789,000 barrels in April.

Production of paraffinic base oil in the U.S. decreased 8% to 4.3 million barrels in the month, compared to 4.6 million barrels. May’s volume was the highest since 4.4 million barrels in July last year.