US base oils and lube consumption extended its rise in April as the prospect of higher prices incentivized buyers to bring forward their procurement plans.

Base oils and lube consumption of 3.71mn bl in April rose by 10pc from year-earlier levels of 3.37mn bl, according to the EIA.

Total demand of 14.51mn bl in the first four months of the year was up 12pc from 12.94mn bl during the same period last year. The volume was the highest for that four-month period since 2018.

US lube consumption has risen on the back of strong economic and industrial production growth over the past year.

The higher demand coincided with a pick-up in lube consumption in key Latin American markets like Brazil and Argentina in recent months. It contrasted with weaker lube demand in Europe, whose economies are slowing ahead of the US.

US lube consumption got a further boost this year amid a sustained rise in base oil and finished lubricant prices.

Regular announcements about such price increases have incentivized lube blenders and lubricant consumers to bring forward their procurement plans to lock in prices before they rise.

Demand is likely to get further support as availability of lubricant additives improves. Supply of some lubricants had tightened because of tight availability of additives.

Firm domestic demand and lower supply has reduced the volume of surplus base oils available for export. The tighter fundamentals have supported the sustained rise in base oil and lubricants prices.