Germany’s January lube demand falls

Germany’s lubricating oil demand fell in January for a fifth month amid sliding consumption of engine oils and metal-working fluids.

Total consumption of 63,680t in January fell by 22pc from the same month a year earlier, government data showed.

Demand jumped by 26pc from December, extending a typical rise in consumption at the start of the year. But the size of the increase was smaller than usual.

The slowdown in lube demand coincided with signs of weaker consumption in other key European markets like Italy.

Consumption of industrial oils in that market has faced growing pressure as factories trimmed output in response to rising energy costs.

Demand has also weakened for key industrial oils in Germany. Consumption of metal-working fluids fell by more than 50pc in December and in January.

Germany’s industrial production contracted for four straight months to December, before edging up in January.

Unlike Italy, the weak lube consumption in Germany extended to engine oils. Demand for the automobile lubricant fell in January for an eighth straight month, and by more than 20pc for a fourth month.

Germany’s car sales rose in February for a second month. Even with the firmer demand, sales remained more than 15pc below levels in February 2020.