Mexico’s lubricating oil demand rose in May at its fastest pace this year, mirroring the country’s strong economic growth during the second quarter.

Lube consumption rose by 27pc in May to 64,080 kilolitres (56,760t), according to Mexican chemical industry association ANIQ.

The rise in demand lifted total consumption to 289,930kl in the first five months of the year. The volume was up 16pc from 249,260kl during the same period last year.

The rise in Mexico’s lube demand every month this year coincided with strong economic growth during the first half of the year.

Industrial production rose in May for an eighth month. Automobile sales rose in May for the first time in nine months, and auto production at its fastest pace in a year.

The pick-up in automobile production coincided with an easing of supply-chain bottlenecks that enabled higher capacity utilization rates.

A 15pc rise in automobile oils consumption in May mirrored that pick-up in activity.

Mexico’s lube production matched the rise in demand, climbing by 26pc in May to 64,240kl.

The rise in lube production boosted Mexico’s base oils requirements.

Almost all the country’s base oils supplies originate from overseas markets. The US is the source of most of the supplies.

US base oils exports to Mexico have fallen this year, despite the rise in lube demand and production.

Mexico’s economic growth and lube demand are likely to face more headwinds over the coming months amid high inflation, rising interest rates and the possibility of a slowdown in US economic growth.

The country’s latest purchasing managers’ index pointed to contraction in July. Consumer confidence also dipped in July to its lowest in more than a year.