Germany’s lubricating oil demand fell for a seventeenth month in November as a slump in export demand compounded weak domestic consumption.The drop in demand added to a widespread slowdown throughout Europe as stalling economic activity magnified the impact of a seasonal fall in lubricants consumption at year-end..Italy’s December lube demand falls.Germany’s domestic lubricants consumption of 62,080t in November fell by 4pc from year-earlier levels, government data showed.Lubricant exports of 81,490t fell in November for a sixteenth month and at a steeper 25pc pace.Like other European markets, demand for industrial lubricants faced the steepest contraction.Consumption of engine oils held firmer, especially in Germany’s domestic market.The disparity mirrored the steeper slowdown in manufacturing activity in Europe compared with the services sector.Germany’s combined domestic and export lube demand of 143,570t in November fell by 17pc from year-earlier levels..The fall in demand cut blenders’ base oils requirements at a time of year when they were already trimming inventories.Concern that lube demand would extend its fall through the start of this year pushed back moves to replenish stocks.Weak demand in Germany and throughout the region magnified the impact of surplus base oils supply.European base oils prices fell in response. They extended their fall in the first few weeks of this year.Economic activity in Germany and Europe turned out firmer than expected in late 2022 and early this year.The trend raised the prospect of similarly firmer-than-expected demand for lubricants.Such a scenario could trigger stronger-than-usual demand for base oils as blenders move to replenish depleted stocks ahead of a seasonal pick-up in demand later in the first quarter of the year.Any such rise in stock-replenishment would be able to tap dwindling supplies of base oils of Russian origin following the EU’s ban on imports of the supplies from 5 February..France’s November lube demand falls
Germany’s lubricating oil demand fell for a seventeenth month in November as a slump in export demand compounded weak domestic consumption.The drop in demand added to a widespread slowdown throughout Europe as stalling economic activity magnified the impact of a seasonal fall in lubricants consumption at year-end..Italy’s December lube demand falls.Germany’s domestic lubricants consumption of 62,080t in November fell by 4pc from year-earlier levels, government data showed.Lubricant exports of 81,490t fell in November for a sixteenth month and at a steeper 25pc pace.Like other European markets, demand for industrial lubricants faced the steepest contraction.Consumption of engine oils held firmer, especially in Germany’s domestic market.The disparity mirrored the steeper slowdown in manufacturing activity in Europe compared with the services sector.Germany’s combined domestic and export lube demand of 143,570t in November fell by 17pc from year-earlier levels..The fall in demand cut blenders’ base oils requirements at a time of year when they were already trimming inventories.Concern that lube demand would extend its fall through the start of this year pushed back moves to replenish stocks.Weak demand in Germany and throughout the region magnified the impact of surplus base oils supply.European base oils prices fell in response. They extended their fall in the first few weeks of this year.Economic activity in Germany and Europe turned out firmer than expected in late 2022 and early this year.The trend raised the prospect of similarly firmer-than-expected demand for lubricants.Such a scenario could trigger stronger-than-usual demand for base oils as blenders move to replenish depleted stocks ahead of a seasonal pick-up in demand later in the first quarter of the year.Any such rise in stock-replenishment would be able to tap dwindling supplies of base oils of Russian origin following the EU’s ban on imports of the supplies from 5 February..France’s November lube demand falls
