Lube demand in some of Europe’s largest markets recovered in July after falling the previous month, highlighting the uneven recovery in the region’s lube consumption.The lack of any sustained recovery in turn complicated blenders’ inventory and procurement plans.France’s lube demand recovered to a two-year high of more than 47,000 tonnes in July, according to Centre Professionel des Lubrifiants.Consumption rose by 10% from year-earlier levels, after falling in three of the previous four months. Demand rose mostly because of a rebound in industrial oils consumption.Spain’s lube demand of 39,400 tonnes in July rose by 14% from year-earlier levels to a sixteen-month high. Consumption fell by 6% the previous month.Portugal’s lube consumption extended its slide in July for a second month. Italy’s lube demand by contrast rose in July for the first time in three months.The uneven demand trends incentivized blenders to maintain low stocks of base oils and finished lubricants, even with a seasonal pick-up in consumption at the end of the third quarter of the year.Signs of healthy availability of base oils supplies added to the attraction of procuring smaller volumes of base oils more frequently.But lower inventories magnified the impact of the seasonal rise in lube consumption in the month of September from August.Lower stocks also limited blenders’ leverage to hold off procuring replenishment volumes even at a time when base oils prices were unusually high relative to feedstock costs and prices in other markets..Italy’s July lube demand rises
