Germany’s May lube demand rises

Germany’s lube demand rose in May for the first time in nine months on the back of a surge in consumption of engine oils and process oils.

Lube consumption rose by 3pc in May to 83,670t, government data showed.

Even with the higher demand, lube consumption of 370,070t in the first five months of the year was still 9pc lower than year-earlier levels.

Firmer lube demand in May mirrored a similar trend in other key regional markets like Italy, Spain, and France.

Lube consumption has mostly fallen in those markets this year. The slower demand helped to ease the impact of unexpectedly tight base oils supply.

But lube demand rose in the month of May.

The increase reflected strong demand for automobile lubricants especially.

The trend coincided with a pick-up in services and travel activity following the relaxation of pandemic restrictions earlier in the year. Some markets also got a boost from a pick-up in tourism activity.

Lube consumption in Germany showed a similar trend. Demand for engine oils jumped by 33pc in May to a 28-month high of 25,840t.

Consumption rose even as Germany’s car sales fell in June for a fourth month.

European demand for industrial oils was more mixed. Consumption in May fell in Italy and rose in France. It was also mixed in Germany.

Demand for process oils rose in May for the first time in eight months. Demand for metal-working fluids fell for a second month.