Mexico’s lube demand fell for a seventh month in November amid signs of a slowdown in the pace of the country’s economic growth.Lower lube consumption cut domestic blenders’ feedstock requirements, raising the prospect of adding a drop in demand for base oils supplies from the US.Base oils shipments to Mexico already faced a sharp slowdown in the fourth quarter of last year following the country’s implementation of stricter rules on oil product imports, including base oils.Mexico is almost entirely reliant on overseas supplies to cover its base oils requirements. The US is the source of most of those supplies.The country’s lube consumption of 52,600 kilolitres (47,000t) in November fell by 6pc and for a seventh month from year-earlier levels, government data showed.Consumption of automobile lubricants fell by 9pc, and industrial oils by 3pc.US base oils exports to Mexico already fell in October and November to their lowest levels in 2023.The export volume in the first nine months of the year far exceeded the country’s lubricants consumption.A portion of the surplus supplies likely ended up in Mexico’s diesel pool as a fuel extender.The surplus of US base oils exports over Mexico’s lube demand stayed much narrower in November even with the fall in domestic consumption.The smaller surplus suggested that export volumes to Mexico were unlikely to fall much further..US’ Nov base oils exports rise
