Thailand’s lube demand fell in October for the seventh time in eight months, signalling a widening disconnect between country’s industrial and services activity.

Any spillover of the demand weakness into neighbouring southeast Asian markets could curb regional blenders’ base oils requirements and pressure Asia refiners to move cargoes to more distant markets to clear rising supplies.

Thailand consumed less than 35,000 kilolitres (31,000 tonnes) of lubricants in October, down from 40,000 kilolitres in September and by 9% year-on-year.

Demand fell because of a 5% drop in consumption of heavy-duty engine oils (HDEO) — a key bellwether for Thailand’s industrial and logistics activity.

A 19% fall in consumption of industrial oils compounded the slowdown and underlined the broader weakness in manufacturing output.

The declines more than offset a 16% rise in consumption of passenger-car motor oils (PCMO), which is more reflective of activity in the services sector.

Higher PCMO consumption coincided with a pick-up in the country’s tourist arrivals.

Thailand’s base oils exports remained firm in October, partially offsetting weaker domestic consumption.

Total demand, including exports, reached around 76,000 kilolitres in October, down from September’s seven-month high but still above typical levels over the past year.

The volume still lagged Thailand’s base oils supply for the third time in four months.

The growing surplus raised the prospect of blenders trimming requirements for additional base oils supplies and of regional refiners pushing more cargoes beyond Asia.