Domestic Base Oils Rebound in Brazil

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Domestic Base Oils Rebound in Brazil

Brazil’s base oil production in February matched output from the same month of 2020 after lagging behind for most of the past year. Meanwhile the country’s base oil import volumes skyrocketed 200% higher than in the same month in 2020, according to recently updated government data.

The South American country’s base oil output – primarily API Group I – amounted to 47,000 metric tons in February, identical to the output in the same month in 2020, according to data released by the National Agency of Petroleum, Natural Gas and Biofuels, ANP.

From October through January, production was generally in the range of 40,000-45,000 tons per month, representing year-to-year decreases of 15%-25%.

The country imported 138,000 tons of base oil in February, up from 46,000 tons in the same month in 2020.

Most of Brazil’s base oil imports come from the United States, with the largest portion being API Group II. Base oil imports were up for 2020, with the largest spikes in volumes occurring in the second quarter and late last year. Before the COVID-19 pandemic struck, Brazil imported volumes of base oil similar to what it produced, but imports rose as domestic output dropped during 2020.

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