Americas' April lube demand rises

Lubricating oil demand in the US and in Latin America’s three largest economies rose in April to the highest since at least early 2020.

The trend highlighted the diverging economic performance of different regions around the world during the first few months of the year.

Lube demand in US, Mexico, Brazil, and Argentina combined rose to 616,270t in April, government data showed. The volume was up 8pc from year-earlier levels.

Total consumption of 2.62mn t in the first four months of the year was up 9pc from 2.41mn t during the same period last year.

Lube demand in the Americas rose in April for the third time in four months. The rising demand reflected the region’s still-firm economic growth, and unusually strong lube consumption in the US market.

The rise in demand in the Americas contrasted with a steep contraction in lube consumption in Europe during the same period.

Demand in that region’s four largest economies fell by 8pc in the first four months of the year as rising costs and waning consumer confidence nipped signs of economic recovery at the start of the year.

The rise in the Americas' lube demand outpaced the 5pc increase in base oils production in the region in the first four months of the year.

Some buyers turned to supplies from Asia-Pacific to supplement their requirements. Surplus availability and lower prices added to the attraction of supplies from that region.

High freight rates have complicated opportunities to move base oil cargoes from Asia-Pacific to other markets this year.

Even so, a steady flow of larger arbitrage shipments from northeast Asia has been lined up to move to the Americas market in recent months. There have been fewer such shipments to Europe.