Argentina’s lube demand fell in May at its slowest pace in five months, adding to signs that the country’s economic contraction could be bottoming out.Any extension of the trend could incentivize blenders to hold larger lube inventories and boost demand for base oils supplies.A rise in lubricants stocks in May could reflect such moves.The higher stocks could also conversely incentivize blenders to trim planned output levels over the following months until they were more confident about a sustained pick-up in finished lube demand.Any such moves to lower lube production would in turn cut their requirements for base oils supplies.Argentina’s lube consumption of 18,400 cubic meters (16,300 tonnes) in May fell by 16% from year-earlier levels, government data showed.The contraction was the tenth in eleven months.But it was the smallest contraction since December, when the depreciation of the country’s currency and withdrawal of a wide range of subsidies exacerbated the economic slowdown.Argentina’s lube production began to fall more slowly from April and maintained that trend in May, with output falling by 18% from year-earlier levels.The surplus of lube production over demand still rose to the highest since January, triggering a rise in stocks.Blenders may be more comfortable curbing any build-up of inventories for now in the face of a likely further fall in lube demand over the coming months, even if at a slower pace..Brazil’s May lube demand extends rise
Argentina’s lube demand fell in May at its slowest pace in five months, adding to signs that the country’s economic contraction could be bottoming out.Any extension of the trend could incentivize blenders to hold larger lube inventories and boost demand for base oils supplies.A rise in lubricants stocks in May could reflect such moves.The higher stocks could also conversely incentivize blenders to trim planned output levels over the following months until they were more confident about a sustained pick-up in finished lube demand.Any such moves to lower lube production would in turn cut their requirements for base oils supplies.Argentina’s lube consumption of 18,400 cubic meters (16,300 tonnes) in May fell by 16% from year-earlier levels, government data showed.The contraction was the tenth in eleven months.But it was the smallest contraction since December, when the depreciation of the country’s currency and withdrawal of a wide range of subsidies exacerbated the economic slowdown.Argentina’s lube production began to fall more slowly from April and maintained that trend in May, with output falling by 18% from year-earlier levels.The surplus of lube production over demand still rose to the highest since January, triggering a rise in stocks.Blenders may be more comfortable curbing any build-up of inventories for now in the face of a likely further fall in lube demand over the coming months, even if at a slower pace..Brazil’s May lube demand extends rise