Italy’s lubricating oil demand fell in December for a sixth month in seven amid a slump in consumption of industrial oils.The drop in consumption compounded a seasonal fall in lube demand at year-end.The trend added to blenders’ incentive to minimize base oils inventories even as they used up those stocks more slowly.Concern that the slowdown in consumption would extend into this year incentivized them to delay moves to replenish their base oils stocks.The sustained slowdown in base oils demand magnified the impact of surplus supplies as sellers struggled to secure outlets for the volumes. Regional base oils prices fell sharply in response.Blenders’ delayed moves to replenish stocks compounded the pressure on supplies and prices early this year.The moves could prompt a sharper pick-up in stock-replenishment in a few weeks’ time to meet a seasonal rise in demand from as soon as March.Italy’s lube consumption of 27,700t in December fell from 33,800t the previous month and by 5pc from year-earlier levels, government data showed..The sustained fall in demand cut the country’s total lube consumption to 377,400t in 2022, down 5pc from 401,600t the previous year.Demand fell in December and in 2022 mostly because of a slump in consumption of industrial lubricants.These fell every month in 2022, including a 23pc drop in December, on the back of sliding consumption of process oils, hydraulic oils and metalworking fluids.Consumption fell as industrial activity slowed.Italy’s industrial production contracted in November for a third month and at its fastest pace since late-2020. Firm automobile lubricants consumption in December and throughout most of the year cushioned the slowdown in demand.The steady consumption mostly reflected strong demand for passenger car motor oils (PCMO). PCMO is more reflective of the state of the services sector.Italy’s retail sales held firm throughout last year to November. The country’s services purchasing managers’ index for December rose to a four-month high..France’s November lube demand falls
