US base oils actively moving into Mexico

HOUSTON (ICIS)–US base oils are actively moving into Mexico as Mexican buyers confirm Mexico’s Pemex base oil producer has no ready material for late August placements.

“All blenders are importing base oils,” a key buyer said.

Mexico’s appetite for light grade base oils has been strong in 2018 as a significant volume of these grades moves into Mexico’s fuel market.

Ongoing imports of brightstock and other heavy grades routinely move from Brownsville, Texas, into the Mexican market.

ICIS tracks brightstock at this location, with the most recent assessment at $3.15-3.21/gal FOB (free on board) Brownsville.

The following graph shows brightstock price trends at the Brownsville, Texas, location.

Pemex is Mexico’s only base oil producer and has just one refinery that makes base oils.

The refinery is at Salamanca with a base oil production capacity of 6,000 bbl/day of Group I base stocks.

Mexico has no Group II or higher base oil production and does not produce any naphthenic oils.

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