Argentina’s Sept lube demand falls

Argentina’s lube demand fell in September for the fifth time in six months and at its fastest pace in eleven months.

The country’s lube consumption fell to less than 19,000 cubic meters (17,000 tonnes) in September, government data showed.

The volume fell by 7% from year-earlier levels to a five-month low.

The extended fall in lube consumption coincided with the country’s slowing economic growth in recent months and political uncertainty ahead of key mid-term elections at end-October.

Persistently weak lube demand incentivized blenders to maintain low inventories of finished lubricants and base oils even with the completion of the elections.

Argentina’s lube production instead consistently outpaced lube demand by a growing volume in the second and third quarters of the year.

The dynamic could trigger a slowdown in lube production as blenders work down the growing overhang.

Any such move could put additional pressure on demand for base oils feedstock supplies.

Argentina’s lube demand fell in September because of a 10% slump in consumption of automobile lubricants that far outpaced steadier industrial oils demand.

Slower auto-lube consumption coincided with a fall in Argentina’s automobile output for three straight months to September.