Argentina’s June lube demand falls

Argentina’s lube demand fell in June after rising the previous month, mirroring a similar trend in Brazil.

Lube consumption of 18,610mᶟ (16,490t) in June fell by 10pc from year-earlier levels, government data showed. The contraction followed a 9pc rise in demand in May.

Lube consumption has now fallen in three of the first six months of the year. It has risen in the other three months.

The uneven consumption mirrored a similar pattern in Brazil, where demand has also been more mixed so far this year.

The lack of a clear trend coincided with contrasting market signals that both supported and hampered economic growth prospects.

Argentina’s industrial production rose in May for a fourth month and at its fastest pace in nine months. Automobile sales rose in June at their fastest in more than a year.

Consumer confidence has also improved.

At the same time, the economy faced pressure from inflation at its highest in decades.

The central bank responded by raising interest rates six times so far this year to the highest since early 2020.

Demand for both automobile and industrial lubricants fell in June and at a similar 9-11pc pace compared with year-earlier levels.

Even with the slowdown, total lube consumption of 115,710mᶟ in the first half of the year was down just 0.3pc compared with year-earlier levels.