Italy’s lubricating oil demand fell in June for the 12th time in 13 months amid a sustained slowdown in consumption of industrial lubricants.Total lube demand of 32,800t in June fell by 0.6pc from year-earlier levels, government data showed. Consumption of 196,900t in the first half of the year fell by 7pc from 211,500t during the same period last year..Lube consumption has faced pressure since the start of the year amid increasingly squeezed economic growth.The country’s industrial production slowed in May from the previous month for the first time in four months.The outlook remains challenging in the face of high inflation, rising energy costs and waning business and consumer confidence.Industrial oils consumption fell by 5pc in June and for a ninth straight month. Even so, the pace of the contraction was the slowest in nine months.Automobile lubricants consumption has held firmer and rose in June for the fifth time in six months. Consumption of more than 93,300t in the first half of the year was up 3pc from year-earlier levels.Consumption got support from a pick-up in travel and services activity following the relaxation of lockdown restrictions earlier in the year. The tourism season is providing further support.The slowdown in lube demand complicated blenders’ ability to raise prices to pass on higher base oil feedstock costs in the first half of the year. The higher costs and lower consumption in turn curbed their own requirements for base oils supplies.The drop in requirements helped to ease the pressure on tighter-than-expected base oil supplies in Europe. The supply tightness is now starting to ease..Italy’s May lube demand edges up
