Lube demand in key European markets like France and Spain extended their drop, compounding a sustained region-wide fall in consumption.The prolonged slump in demand maintained the importance for blenders to maintain low stocks and to procure small volumes of feedstock supplies on a need-to basis.The incentive to maintain low stocks extended to base oils suppliers and distributors and complicated the procurement and storage of larger shipments from overseas markets.A surge in Europe’s Group III base oils supply in November highlighted that dilemma, with most of the volume originating from markets outside Europe.The rise in base oils supply and ongoing slide in Europe’s lube consumption raised the prospect of those volumes lingering for longer than usual.Lube consumption of around 38,000 tonnes in France in November fell by 4% and for the third time in four months from year-earlier levels, according to Centre Professionel des Lubrifiants.Demand fell mostly because of steeper drop in industrial oils consumption.Spain’s lube consumption of around 32,400 tonnes in November fell by 17% in November, according to CORES, which tracks the country’s energy stocks.Those two countries’ total lube demand, along with Italy, Belgium, Portugal and Poland, came to around 136,000 tonnes in November and 1.50 million tonnes in the first eleven months of the year.The volume was down 2% from 1.53 million tonnes during the same eleven-month period in 2023. Including Germany, the contraction in Europe’s lube consumption was much steeper, at closer to 8%, or more than 150,000 tonnes, in the first ten months of the year.The sharp slowdown highlighted the steeper contraction in Germany compared with other European markets.The shrinking consumption also cushioned the impact of reduced base oils production capacity in Europe and instead helped to sustain steady base oils exports from the region during the year..Italy’s November lube demand falls.Europe’s Nov Group III supply rises
