Latin America’s lube demand is likely to hold in a relatively narrow range over the coming months before a seasonal dip at the end of the year.Steady demand would boost the need for the region’s refiners to maintain firm base oils output levels and for buyers to maintain large base oil import volumes to cover their requirements.The region’s lube consumption is likely to slip to less than 585,000 tonnes in the third quarter of the year, from more than 595,000 tonnes during the second quarter, according to the Baseoilnews short-term outlook.The third quarter volume would still be well above consumption levels of less than 550,000 tonnes during the first three months of the year.It would also exceed an expected slowdown in consumption to less than 570,000 tonnes during the fourth quarter of this year.Steady demand at least through to the start of the fourth quarter would give buyers the flexibility to procure larger volumes of base oils earlier in the third quarter of the year.The move would help to cover for any supply disruptions in the coming months, especially for imports.This year’s Atlantic hurricane season is forecast to be much more active than usual, boosting concerns about disruptions to base oils supplies from the US Gulf coast over the coming months.Steady demand in Latin America would then give buyers the time to trim requirements and work down any surplus volumes during the final quarter of the year if supply were to remain steady over the coming months..Brazil’s June lube demand extends rise.Argentina’s June lube demand falls.Latin America’s May lube demand falls
