Latin America’s lube demand is likely to rise in the third quarter of the year, extending a recovery in consumption during the three months to end-June.The pick-up in demand would follow a seasonal dip in consumption in the first three months of this year and late last year.Lube demand is likely to rise to around 540,000 tonnes in the third quarter of the year, according to the Baseoilnews short-term outlook.The volume would be up from around 530,000 tonnes during the second quarter and from 500,000 tonnes during the first three months of the year.Firmer finished lube demand in the third quarter of the year would sustain steady requirements for base oils supplies from the US.The requirements would still likely be lower than during the third quarter of last year when plant maintenance work in Brazil cut the region’s base oils supply.The wider shortfall of regional supply versus demand triggered the shipment of a larger-than-usual wave of base oils from the US to Latin America during that period.The shipments also helped to curb a build-up of surplus supplies in the US market during that period.A smaller shortfall of supply versus demand during the third quarter of this year would curb the region's base oils requirements from the US compared with year-earlier levels.A drop in requirements raised the prospect of a build-up of surplus supplies in the US during that period.Signs of balanced-to-tighter US supplies in the second quarter of this year could in turn curb the country’s need for outlets to place any surplus volumes..Asia’s Q3 lube demand likely to edge up.Brazil’s April lube demand rises
