Latam Q4 lube demand to dip more slowly

Latin America’s lube demand is likely to fall less steeply than expected in the fourth quarter from the previous three months, before recovering in the first quarter of next year.

The region’s lube consumption is likely to fall below 520,000t in the fourth quarter, from more than 540,000t in the third quarter of the year, according to the Baseoilnews.com short-term outlook.

The seasonal dip in demand in the fourth quarter is slightly smaller than the previous month’s forecast, reflecting the sustained rise in Brazil’s lube consumption in recent months.

The region's lube consumption is then likely to recover to more than 530,000t in the first three months of next year.

The volume would be up from around 522,000t during the first three months of this year.   

Firmer-than-expected lube consumption in the region would help to cushion the impact of a seasonal slowdown in lube demand in the US during the final months of this year and early next year.