Mexico’s lubricating oil demand fell more sharply in December, adding to signs of a slowdown in the country’s economic activity at the end of last year.Weaker lube consumption raised the prospect of compounding a slowdown in Mexico’s base oils imports from the US.The country is almost entirely reliant on overseas supplies to cover its base oils requirements. Most of the supplies originate from the US.US base oils exports to Mexico already fell sharply late last year following the country’s implementation of stricter rules on imports of the lubricant feedstock from October.A further drop in Mexico’s requirements would put additional pressure on US refiners to move more base oils supplies to other markets instead.The country’s lube consumption of around 45,500 kilolitres (40,400t) in December fell from more than 52,000kl in November, government data showed.The volume was the lowest in more than three years.The drop in demand for an eighth month cut Mexico’s total lube consumption to 657,300kl in 2023, down from 674,500kl the previous year.The sharp drop in consumption in December added to signs of slowing economic activity in the country at the end of the year.Mexico’s preliminary economic activity indicator rose in December at its slowest pace in seven months. The country’s automobile production fell in December for the first time in eight months.Mexico’s automobile lube consumption fell for an eighth month in December and at its fastest pace in more than four years.Industrial oils consumption also fell sharply..US’ Dec base oils exports stay high.Latin America’s Nov lube demand growth slows
