Argentina’s lube demand rose in January for the second time in three months and at the fastest pace in more than a year.The pick-up in consumption added to signs of an increasingly strong recovery in the country’s economic activity.A revival in economic growth in turn raised the prospect of supporting an extended rise in the country's lube consumption.The dynamic would flip blenders’ preference to maintain low stocks to one of needing to hold larger inventories to meet such a pick-up in demand.Firmer demand and larger stocks would increase requirements for additional base oils supplies.Argentina’s lube consumption of 17,300 cubic meters (15,400 tonnes) in January rose by 6% from year-earlier levels, government data showed..The rise in consumption followed much steadier demand during the previous two months.The steadier demand contrasted with a sharp slide in lube consumption during the first ten months of last year.Strong automobile lubricants demand led the recovery, with consumption rising by 10% and for a third month in January.Industrial oils consumption shrank by 0.1% in January, improving from a 9% contraction the previous month.The rise in lube consumption mirrored a similar improvement in the country’s economic growth.Argentina’s economic activity rose in December for a second month and at its fastest pace in more than two years.The country’s automobile sales almost doubled in December from year-earlier levels. They rose even faster in the month of January.Rising domestic lube demand raised the prospect of boosting Argentina’s requirements for additional base oils supplies.Those requirements would add to signs of firm regional demand that continued to support higher-than-usual base oils exports from Argentina.Another cargo of Group I base oils moved to Brazil in January, following similar shipments during the previous three months.The trend extended into February, with another cargo being lined up at the end of the month..Brazil’s Jan lube demand extends rise.Argentina’s Jan base oils supply falls.Latam’s December lube demand rises.Base Oil News stories and analysis also available on ICIS platform
