Latin America’s lube demand is likely to edge down in the second quarter of the year from the first three months, but at a slower pace than in Asia and in Europe.Like those markets, demand is likely to peak in the month of March.Demand is then likely to fall only slightly in the second quarter of the year.Such a trend would contrast with a rise in the region’s lube demand in the second quarter from the first three months of the year in 2022 and in 2023.Demand is more likely to slow this year in the face of falling consumption in markets like Argentina, weak demand in Mexico and a slowdown in the pace of growth in Brazil.The region’s lube demand is likely to rise to close to 520,000t in the first three months of the year, according to the Baseoilnews short-term outlook.The volume would be up from around 500,000t during the fourth quarter of last year, but down slightly from the same period a year earlier.Demand is then likely to fall slightly in the second quarter from the first three months of the year.The muted drop in consumption would contrast with the prospect of a more-than 7pc fall in second-quarter demand in Europe and a more-than 10pc fall in demand in Asia compared with the first three months of the year.A larger slowdown in demand in Europe and Asia would raise the prospect of a rise in surplus base oils supplies in those markets.A smaller slowdown in demand in Latin America would boost the attraction of targeting that region with more of the surplus supplies. .Asia’s lube demand set to peak in March.Europe’s lube demand to peak in March
