Latin America’s lube demand fell in June for the fourth time in five months amid a simultaneous dip in consumption in the region’s largest markets.Falling demand and signs of weaker economic activity incentivized blenders to maintain lower stocks.A dip in the region’s base oils supply in June kept those stocks tight.Tight inventories typically prompt a pick-in requirements for replenishment supplies.Any such rise in demand could be more muted in the face of weaker lube consumption and expectations of rising availability of surplus base oils supplies in overseas markets.Latin America’s lube consumption came to more than 205,000 tonnes in June, government data showed.The volume fell from more than 217,000 tonnes in May and by 2% from year-earlier levels..Demand fell as shrinking consumption in markets like Mexico, Brazil and Argentina countered firmer consumption in other markets like Chile.The size of the drop in demand lagged a steeper fall in the region’s base oils supply.Total supply, or regional output and US exports to Latin America combined, fell to less than 183,000 tonnes in June.The volume dipped from more than 205,000 tonnes in May and by 4% from year-earlier levels..Supply fell as regional base oils output edged down to a four-month low and US exports to the region slipped to a five-month low.The lower supply lagged demand for a second month and by the largest volume in five months.The supply-shortfall left blenders with tight stocks heading into the third quarter of the year and raised the prospect of moves to replenish those inventories.Signs of a pick-up in term demand for US base oils supplies in July and August pointed to such moves to maintain sufficient stocks.Even so, blenders’ persistently balanced-to-tight inventories so far this year limited their exposure to weaker lube demand and uncertainty about the economic outlook.Any preference to maintain inventories at lower levels could limit the extent of any pick-up in demand for overseas base oils supplies..Brazil’s June lube demand extends fall.Argentina’s June lube demand falls.Asia’s June lube demand recovers.Base Oil News stories and analysis also available on ICIS platform
