Europe’s Q3 lube demand likely to fall

Europe’s lubricating oil demand is set to extend its fall during the third quarter of the year, raising the prospect of rising surplus base oils supplies without a drop in production.

Lube demand is likely to fall below 560,000t in the third quarter of the year, down from more than 580,000t in the second quarter, according to the Baseoilnews.com short-term outlook.

Lube demand rose to around 620,000t in the first three months of the year on the back of a seasonal pick-up in consumption in March especially.

Demand is likely to hold firmer in the three months to July compared with April, before facing a seasonal slowdown in August.

A weak economic outlook and high and rising interest rates are likely to incentivize blenders to maintain lower-than-usual base oil and lubricants stocks compared with previous years.