Germany’s April lube demand falls

Germany’s lubricating oil demand fell in April for an eighth month amid a drop in consumption of both automobile and industrial oils.

Total lube demand of 72,590t in April fell by 8pc from 78,680t the same month a year earlier, government data showed.

The slowdown gathered pace from a 1pc contraction in demand in March. It was smaller than the 12pc contraction in total consumption to 286,900t in the first four months of the year.

The steeper fall in April lube consumption from March added to signs of a slowdown in economic activity in the face of weak consumer demand, rising costs, and persistent supply-chain issues.

Germany’s industrial production fell in April for a second month after a brief recovery during the first two months of the year.

The country’s car sales fell in May for a third straight month. Consumer confidence for July is at a record low.

A drop in automobile and industrial lubricants demand reflected the pressure on both consumer and industrial activity.

Germany’s engine oil consumption fell in April for the first time in three months. Process oil consumption dropped at its fastest pace in three months. Metal-working fluid consumption slid for a ninth month in ten.

The weaker demand complicates lube blenders’ leverage to pass on base oil feedstock costs that have surged in recent months. It also allows them to put off for longer the need to replenish their feedstock supplies.

There were some persistent outliers to the demand weakness.

Turbine oils demand rose in April for the 14^th time in 16 months. Consumption of 1,480t in the first five months of the year was up 25pc versus the same period last year.