Brazil’s Feb lube demand extends slide

Brazil’s lubricating oil demand fell in February at its fastest pace in 21 months, mirroring a slide in the country’s automobile sales and industrial production.

Lube demand of 78,750m³ (69,760t) in February fell by 21pc from 99,450m³ the same time a year ago, according to IBP.

Sales of 233,353m³ in the three months to February were down 15pc versus the same period a year earlier. The last time Brazil’s lube demand rose was in July 2021.

The sustained fall in Brazil’s lube demand mirrored a similar slide in the country’s automobile sales. These have fallen for seven straight months to February.

The country’s industrial production fell in February for a sixth month, against the backdrop of rising interest rates and high inflation.

The slowdown since the middle of last year highlighted a divergence in the pace of the economic recovery and lube demand growth throughout the South American market.

Lube demand and automobile sales have also slowed in Argentina in recent months.

By contrast, industrial production and auto sales in Chile have continued to hold firm. That country’s base oil imports also rose in second-half 2021 versus the first half of the year.