France’s July lube demand falls

France’s lubricating oil demand fell in July for the third time in four months amid sliding consumption of automobile oils especially.

Total lube demand of 44,250t in July fell by 11pc from year-earlier levels of 49,920t, according to Centre Professionel des Lubrifiants (CPL).

The contraction cut total consumption to 316,210t in the first seven months of the year. The volume was down 4pc from 328,290t during the same period last year.

The fall in France’s lube demand in July added to a region-wide slowdown in consumption as rising costs squeezed economic activity, cut industrial production, and slashed consumers’ purchasing power.

The pressure on lube consumption compounded a seasonal slowdown in base oils and lube demand during the summer months.

It also coincided with an improvement in European base oils supply following the completion of plant maintenance work.

France’s 13pc fall in consumption of automobile oils in July was steeper than the drop in industrial oils.

The trend contrasted with Italy, where automobile oils consumption got a boost from firm activity in the services sector and especially the tourism industry.

France’s retail sales and industrial production both fell in July from the previous month. Its services purchasing managers’ index fell in July from the previous month and extended the drop in August.

Sales of industrial oils fell by 9pc in July, led by a 17pc drop in consumption of metal-working fluids and a 12pc fall in consumption of process oils.