Lubricating oil demand in Latin America is set to firm relative to consumption in Europe and especially Asia over the coming months.

The trend raises the prospect of firmer base oils requirements in Latin America relative to those other markets.

The excess of European lube demand over consumption in Latin America is forecast to fall in the third quarter of the year to the narrowest since the end of last year, according to the Baseoilnews.com short-term outlook.

The excess of Asia-Pacific lube demand over consumption in Europe is similarly forecast to dip in the third quarter to the narrowest in more than a year.

Such a development would contrast with the first quarter of the year, when Asia-Pacific lube demand exceeded demand in Europe by the largest amount in a year.

It would also boost the attraction for base oils suppliers to target surplus volumes towards markets where demand is strong relative to other markets.