Mexico’s lube demand fell for a tenth month in February, cutting further the country’s requirements for base oils supplies from the US.Mexico’s demand for base oils imports had previously got support for the consumption of the some of the supplies as a fuel extender.Tighter rules on base oils imports since last October left domestic lube consumption the key driver of the country’s base oils requirements.That consumption shrank sharply late last year and early this year.The fall in demand mirrored a slowdown in the pace of Mexico’s economic growth through the fourth quarter of last year.Economic activity showed signs of bottoming out and improving slightly from early this year.Mexico’s lube demand similarly extended its fall in February. But the size of the contraction was the smallest in three months.Lube consumption of 51,700 kilolitres (45,800 tonnes) in February fell by 11% from year-earlier levels even as it edged up from 50,500 kilolitres in January, government data showed.Consumption of automobile lubricants fell by 17% in February and industrial oils by 9%.The sustained drop in lube demand mirrored a sharp fall in US base oils exports to Mexico since last October.Mexico is almost entirely reliant on overseas supplies to cover its base oils requirements.The US is the source of almost all of Mexico’s base oils imports.The drop in US base oils exports cut sharply the surplus of base oils supplies over Mexico’s lube demand compared with the first nine months of last year.The trend reversed slightly in February as US base oils exports to Mexico rose to a five-month high.The surplus of US exports over Mexico’s lube demand remained lower than during the first nine months of last year even with the rise in shipments in February.The smaller surplus raised the prospect of US base oils exports to Mexico holding steadier over the coming months..US’ February base oils exports improve.Latam January lube demand holds firm
