Latin America’s lube demand rose in October for the first time in three months as steadier consumption in Mexico balanced out an ongoing slide in lube demand in Argentina.Firmer demand boosted the region’s requirements for base oils supplies that had stayed unusually tight from the second quarter of the year.A rise in base oils output and a surge in US exports to the region flipped the tightness to a large surplus in October.Any repetition of that trend in the final two months of the year would leave Latin America with a large supply-overhang and a likely drop in requirements at the start of next year.Latin America’ lube consumption rose to more than 200,000 tonnes in October, government data showed. The volume rose from less than 182,000 tonnes in September and by 1% from year-earlier levels.Demand rose even with more muted lube consumption in Brazil.Steadier lube demand in Mexico picked up the slack.The country’s lube consumption of more than 54,000 tonnes in October edged up by 0.4% from year-earlier levels. But it was just the second increase in Mexico's demand in the past year amid a revival in automobile lube consumption.A 35% rise in Latin America’s base oils supply to more than 224,000 tonnes in October far outpaced the pick-up in demand.Total supply, or regional output and US exports to Latin America combined, rose from close to 160,000 tonnes in September to a fifteen-month high.The surge in supply outpaced demand by more than 21,000 tonnes in October.The surplus was the first in eight months and the largest since January.Excluding Mexico, the surplus was still the first in nine months.The surplus helped to balance out a similar-sized shortfall in September, leaving supply relatively balanced.Any extension of the surplus in November and December would by contrast trigger a growing supply-overhang.Any such surplus would help to cover a likely pick-up in consumption from early next year.It would also curb requirements for additional supplies from markets like the US.Any such drop in demand for supplies from the US could complicate that market’s options for clearing a likely pick-up in surplus volumes early next year..Europe’s Oct lube demand falls.Asia’s October lube demand rises.Brazil’s Oct base oil supply lags demand.US Oct base oils/lube exports to Latam rise
Latin America’s lube demand rose in October for the first time in three months as steadier consumption in Mexico balanced out an ongoing slide in lube demand in Argentina.Firmer demand boosted the region’s requirements for base oils supplies that had stayed unusually tight from the second quarter of the year.A rise in base oils output and a surge in US exports to the region flipped the tightness to a large surplus in October.Any repetition of that trend in the final two months of the year would leave Latin America with a large supply-overhang and a likely drop in requirements at the start of next year.Latin America’ lube consumption rose to more than 200,000 tonnes in October, government data showed. The volume rose from less than 182,000 tonnes in September and by 1% from year-earlier levels.Demand rose even with more muted lube consumption in Brazil.Steadier lube demand in Mexico picked up the slack.The country’s lube consumption of more than 54,000 tonnes in October edged up by 0.4% from year-earlier levels. But it was just the second increase in Mexico's demand in the past year amid a revival in automobile lube consumption.A 35% rise in Latin America’s base oils supply to more than 224,000 tonnes in October far outpaced the pick-up in demand.Total supply, or regional output and US exports to Latin America combined, rose from close to 160,000 tonnes in September to a fifteen-month high.The surge in supply outpaced demand by more than 21,000 tonnes in October.The surplus was the first in eight months and the largest since January.Excluding Mexico, the surplus was still the first in nine months.The surplus helped to balance out a similar-sized shortfall in September, leaving supply relatively balanced.Any extension of the surplus in November and December would by contrast trigger a growing supply-overhang.Any such surplus would help to cover a likely pick-up in consumption from early next year.It would also curb requirements for additional supplies from markets like the US.Any such drop in demand for supplies from the US could complicate that market’s options for clearing a likely pick-up in surplus volumes early next year..Europe’s Oct lube demand falls.Asia’s October lube demand rises.Brazil’s Oct base oil supply lags demand.US Oct base oils/lube exports to Latam rise
