Germany’s lubricating oil exports fell in February for a sixth month, but at a slower pace than the drop in domestic demand.Lube exports of 129,470t in February fell by 33pc from 154,530t the same month a year earlier, government data showed..Like domestic demand, lube exports have fallen in recent months. But the pace of the contraction has mostly been slower than the drop in domestic lube consumption.The trend has helped to cushion the impact of weaker domestic demand, with lube exports typically accounting for more than 60pc of Germany’s total lube production.The relative strength in demand of different products in the domestic and export markets has also softened the effect of the slowdown.Exports of hydraulic oils, gear oils and engine oils fell sharply in February. But domestic demand for engine oils and hydraulic oils rose that month.Exports of metal-working fluids surged in February, while process oil shipments were relatively steady. The trend contrasted with a slump in domestic demand for metal-working fluids and lower consumption of process oils that month.Even so, the sustained weakness of both domestic and export demand for lubricants is curbing blenders’ requirement for base oils. Growing signs of a slowdown in industrial activity in Europe raise the prospect of prolonging that weakness.But the drop in base oils supply in Europe has continued to outpace the slowdown in demand.Surging base oil prices in response to supply tightness raise the prospect of adding to the slowdown in lube demand by increasing pressure on blenders’ costs..Germany’s February lube demand falls
