Latin America Base Oil Market Outlook

the latin america base oil market is expected to remain highly competitive during the forecasted period (2018 to 2032). it is expected that the development of new, more efficient base oil technologies and the continued search for cost-effective solutions to support consumer demand will be critical market drivers. oil producers in latin america have become increasingly aware of the changing base oil technology needs for modern lubricants, and are investing in improved refinement capabilities to meet the demand. this has seen an influx in the production of higher quality base oils, from the traditional group i to groups ii, iii and iv, allowing producers to better meet the requirements of customers and product formulators. supply chains for base oils in the region have also seen improvements. improved transportation methods for oil extraction have led to shorter wait times for refiners to receive and process shipments of raw materials. increased investment in refining capabilities across the whole of the region have also provided more flexibility to product formulators and buyers, allowing them to secure secure high-quality base oils from multiple suppliers. as base oil technologies continue to change, so will the demand from consumers. it is expected that consumers in the region will become more aware of the importance of base oil quality and cost, and will demand more value for their money when purchasing lubricants. this could, in turn, lead to an increased demand for high-quality base oils, as well as higher expectations from suppliers. finally, in-region producers are also expected to further expand their production capacities to meet the anticipated increasing demand for base oils in the latin america market. to achieve this, more refined technology and efficient production processes must be utilized. growing fuel and lubricant demand from consumer and fleet service providers, as well as equipment manufacturers, appears highly likely in the medium to long-term.