Italy’s April lube demand slumps

Italy’s lubricating oil consumption fell in April at its fastest pace since the second quarter of 2020, when lockdowns slashed industrial and transport activity.

Lube consumption fell in April for an 11^th straight month from year-earlier levels, dipping by 20pc to 29,200t, government data showed.

The contraction contrasted with rising consumption of motor fuels and especially of jet fuel.

Lube demand slowed as consumption of industrial oils slumped by 26pc in April to 17,260t. Consumption of metalworking oils and process oils fell even more steeply.

The contraction highlighted waning industrial demand as factories slowed operations in response to rising energy costs and supply-chain disruptions.

Italy’s industrial production growth rose in March for the sixth time in seven months.

But the outlook is less positive.

The country began including more detailed lubricants data from the start of this year in view of its predictive role of future demand.

The country’s auto lubricant consumption had been rising during the first three months of this year as the relaxation of Covid-19 restrictions boosted transport activity.

But auto lubricants demand fell by 13pc in April to 14,200t.

Total lube demand of 128,700t in the first four months of the year was down 10pc from 143,200t during the same period last year.

A sustained regionwide drop in lube consumption like that would be one way to ease the impact of the unexpectedly tight availability of Group I base oils in Europe.