Lube demand in Latin America fell in December at its fastest pace in more than a year as slowing consumption in Brazil compounded an increasingly steep drop in demand in markets like Mexico and Argentina.Waning lube consumption was likely to limit the size of a typical recovery in demand in the first quarter of the year from the previous three months.A recovery in Brazil’s base oils output was also likely to cover more of the region’s requirements.Weaker lube consumption was likely to compound the impact of rising regional base oils supply by cutting demand for additional supplies from overseas markets.Any such move would impact the US the most. The country is the largest overseas base oils supplier for the Latin American market.US base oils exports to Latin America surged in the fourth quarter of last year, tapping the region’s firmer lube demand and lower base oils supply.A change in those supply-demand fundamentals could leave US refiners needing to direct more supplies to other markets instead.Latin America’s lube consumption of more than 160,000t in December fell by 6pc from year-earlier levels, government and industry data showed.The drop in demand contrasted with rising consumption throughout most of last year, lifting total consumption to close to 2.10mn t in 2023.The volume rose by 2pc from more than 2.04mn t in 2022 to the highest in more than six years.Strong lube demand in Brazil throughout most of the year countered weaker consumption in other markets like Chile, Mexico, and Argentina.A slowdown in consumption in Brazil in December removed that support.Any extension of that slowdown early this year would likely coincide with ongoing demand weakness in those other markets..Brazil’s December lube demand falls.Mexico’s December lube demand falls
Lube demand in Latin America fell in December at its fastest pace in more than a year as slowing consumption in Brazil compounded an increasingly steep drop in demand in markets like Mexico and Argentina.Waning lube consumption was likely to limit the size of a typical recovery in demand in the first quarter of the year from the previous three months.A recovery in Brazil’s base oils output was also likely to cover more of the region’s requirements.Weaker lube consumption was likely to compound the impact of rising regional base oils supply by cutting demand for additional supplies from overseas markets.Any such move would impact the US the most. The country is the largest overseas base oils supplier for the Latin American market.US base oils exports to Latin America surged in the fourth quarter of last year, tapping the region’s firmer lube demand and lower base oils supply.A change in those supply-demand fundamentals could leave US refiners needing to direct more supplies to other markets instead.Latin America’s lube consumption of more than 160,000t in December fell by 6pc from year-earlier levels, government and industry data showed.The drop in demand contrasted with rising consumption throughout most of last year, lifting total consumption to close to 2.10mn t in 2023.The volume rose by 2pc from more than 2.04mn t in 2022 to the highest in more than six years.Strong lube demand in Brazil throughout most of the year countered weaker consumption in other markets like Chile, Mexico, and Argentina.A slowdown in consumption in Brazil in December removed that support.Any extension of that slowdown early this year would likely coincide with ongoing demand weakness in those other markets..Brazil’s December lube demand falls.Mexico’s December lube demand falls