Europe's March lube demand gets boost

Lube demand in continental Europe’s four largest economies enjoyed a seasonal rise in March that got a further boost from pandemic-related pent-up demand.

Total lube consumption in Germany, France, Italy, and Spain combined rose to 215,610t in March, government and industry data showed.

The 24pc rise in sales from the previous month was larger than the typical month-on-month rise in sales in March.

The 2pc fall in March consumption from year-earlier levels was the seventh straight fall in monthly sales. But the size of the contraction was the smallest since last August when demand was still growing.

European lubricating oil consumption rose as the withdrawal of pandemic-related restrictions throughout the region triggered a rise in consumer and services activity especially.

Consumption of automobile lubricants especially benefited from the pick-up in activity.

The rise in demand coincided with tighter availability of base oils to produce the lubricants.

Scheduled and prolonged plant shutdowns, plant closures last year and the slump in base oil supplies from Russia have slashed supply of Group I base oils. Prices have surged in response.

But the pick-up in demand is relative.

The four countries’ total lube consumption of 554,850t in the first three months of the year remained 8pc down from year-earlier levels of more than 600,000t.

A post-pandemic economic bounce is also set to be shorter than expected as supply-chain issues and rising costs pressure industrial production and consumer confidence.