Lube demand in some of Europe’s largest markets fell in August for the third time in four months, deepening a dip in consumption during the summer holiday season.Demand fell in large markets like France, Spain and Italy, as well as in smaller outlets like Portugal.The drop in demand left blenders’ stocks lasting longer and pushed back the timing of any moves to replenish their inventories.It also raised the prospect of a build-up of surplus base oils supplies during the third quarter of the year even with a drop in production in some markets in the region.France’s lube demand of 29,400 tonnes in August fell by 9% and for the third time in four months from year-earlier levels, according to Centre Professionel des Lubrifiants.Consumption of automobile lubricants fell by 11% and industrial oils consumption by 6%.Spain’s lube demand fell by 4% to 25,200 tonnes in August. The volume was the lowest in two years.The ongoing slowdown in regional consumption incentivized blenders to maintain lower stocks and contrasted with firmer demand in markets like Asia and Latin America.The weaker lube consumption in Europe also coincided with regional base oils prices that were at a steep premium to prices in those other markets where lube demand was firmer.The dynamic sustained the attraction of targeting the European market with more base oils supplies both from within the region and from overseas markets like US, Middle East and Asia.Weak demand and healthy base oils supplies in turn raised the prospect of a growing surplus without moves to trim regional output or remove some of the surplus volumes from the region..Italy's August lube demand falls.Italy’s August base oils stocks rise
