Demand falls for second month
Lower demand contrasts with rising consumption in Italy, Portugal
Steady demand in Mediterranean facilitates stock-planning
Spain’s lube demand fell in September for a second month, leaving consumption in the Mediterranean region relatively steady.
The country’s lube consumption of 37,500 tonnes in September fell by 2% from year-earlier levels, according to CORES, which tracks the country’s energy stocks.
The contraction slowed from a 6% dip in consumption in August.
The smaller contraction coincided with rising lube consumption in Portugal and Italy throughout the third quarter of the year.
Rangebound demand in the Mediterranean region enabled blenders to maintain low lubricants and base oils stocks.
It also facilitated base oils distributors’ moves to ensure sufficient supply to meet those regional requirements.
Steady demand and healthy availability of base oils supply in turn enabled blenders to procure smaller volumes more frequently.
Their lower stocks could also cushion the impact of a seasonal slowdown in lube consumption at the end of the year by curbing the need to cut inventory levels.
The size of the slowdown in demand at year-end is also smaller than the seasonal slump in lube consumption in the month of August from July.