Lube demand in some of Europe’s largest markets extended its drop in October even with a pick-up in consumption in countries like France.Falling demand during the final months of the year raised the prospect of magnifying a seasonal dip in consumption at year-end.Blenders’ moves to maintain low stocks in response to falling demand could conversely limit the impact of the year-end dip in consumption. Spain’s lube consumption of 38,300 tonnes in October fell by 2% from year-earlier levels, government data showed.The contraction coincided with a similar drop in demand in Italy in October and a steep dip in consumption in Poland.France’s lube demand by contrast edged up by 1% to 42,600 tonnes in October on the back of improving industrial oils consumption.Lube consumption in Portugal and Belgium also improved in October.Total lube consumption in the six countries came to more than 144,000 tonnes in October.The volume fell by 2% and for the fifth time in six months from year-earlier levels.Lube consumption in Germany fell much more steeply than those six countries in the first nine months of the year.The trend raised the prospect of deepening further the size of the drop in Europe’s total lube consumption in October.Sliding demand, and signs of healthy availability of base oils supply, incentivized Europe’s blenders to maintain low inventories.Their already-low stocks could conversely cushion the impact of a seasonal slowdown in demand, when blenders’ moves to cut inventories typically exacerbate the slowdown.Those seasonal moves to cut inventories usually then compound the subsequent rise in surplus base oils supplies.Blenders' low inventories, and in turn steadier-than-usual demand, could limit such a rise in surplus supplies.Maintenance work and lower output at several base oils units in Europe in the fourth quarter of the year could curb further the size of any surplus.Plant maintenance work in the US in October coincided with a sharp dip in US base oils exports to Europe that month, further trimming regional supplies.Europe’s base oils prices typically face strong downward pressure at year-end and the start of the new year as sellers seek to clear a large overhang of surplus supplies.A smaller overhang of surplus volumes could curb that pressure.Europe’s sustained fall in lube consumption could, unusually, facilitate such an outcome..Italy’s October lube demand falls.Italy’s October base oils output falls.US’ Oct base oils exports to Europe fall
Lube demand in some of Europe’s largest markets extended its drop in October even with a pick-up in consumption in countries like France.Falling demand during the final months of the year raised the prospect of magnifying a seasonal dip in consumption at year-end.Blenders’ moves to maintain low stocks in response to falling demand could conversely limit the impact of the year-end dip in consumption. Spain’s lube consumption of 38,300 tonnes in October fell by 2% from year-earlier levels, government data showed.The contraction coincided with a similar drop in demand in Italy in October and a steep dip in consumption in Poland.France’s lube demand by contrast edged up by 1% to 42,600 tonnes in October on the back of improving industrial oils consumption.Lube consumption in Portugal and Belgium also improved in October.Total lube consumption in the six countries came to more than 144,000 tonnes in October.The volume fell by 2% and for the fifth time in six months from year-earlier levels.Lube consumption in Germany fell much more steeply than those six countries in the first nine months of the year.The trend raised the prospect of deepening further the size of the drop in Europe’s total lube consumption in October.Sliding demand, and signs of healthy availability of base oils supply, incentivized Europe’s blenders to maintain low inventories.Their already-low stocks could conversely cushion the impact of a seasonal slowdown in demand, when blenders’ moves to cut inventories typically exacerbate the slowdown.Those seasonal moves to cut inventories usually then compound the subsequent rise in surplus base oils supplies.Blenders' low inventories, and in turn steadier-than-usual demand, could limit such a rise in surplus supplies.Maintenance work and lower output at several base oils units in Europe in the fourth quarter of the year could curb further the size of any surplus.Plant maintenance work in the US in October coincided with a sharp dip in US base oils exports to Europe that month, further trimming regional supplies.Europe’s base oils prices typically face strong downward pressure at year-end and the start of the new year as sellers seek to clear a large overhang of surplus supplies.A smaller overhang of surplus volumes could curb that pressure.Europe’s sustained fall in lube consumption could, unusually, facilitate such an outcome..Italy’s October lube demand falls.Italy’s October base oils output falls.US’ Oct base oils exports to Europe fall
