US base oils and lube demand fell in May for the first time in three months, suggesting buyers may have brought forward their procurement plans.
Lube consumption of 2.97mn bl (418,000t) in May fell by 10pc from year-earlier levels to a five-month low, according to the EIA.
Even with the slowdown, consumption of 17.48mn bl in the first five months of the year was up 8pc from 16.23mn bl during the same period last year. The volume was the highest since 2018.
Lube demand got support from firm economic activity over the past year. US industrial production rose in June for a 16th month. US vehicle miles travelled rose in May for a 15th month.
There were also signs that the pace of economic activity was slowing.
The rise in industrial production in June was the slowest in five months. The rise in vehicle miles travelled in May was the slowest in 16 months.
Surging base oils prices in the first few months of the year had also incentivized buyers to bring forward their procurement plans to lock in supplies before the price increases took effect.
The urgency to buy then eased as prices have steadied.
The slowdown in domestic demand freed up more base oils supplies to move to overseas markets.
Base oils and lube exports rose in May to a nine-month high, according to the EIA.