Italy’s May lube demand edges up

Italy’s lube demand rose in May for the first time in a year on the back of a surge in consumption of passenger-car and motorcycle engine oils.

Demand for industrial oils extended its slide.

Total lube demand of 35,400t in May rose by 0.3pc from the same period last year, government data showed.

Total consumption of 164,100t in the first five months of the year fell by 8pc from 178,500t during the same period last year.

Italy’s lube demand barely rose in May even as consumption of passenger-car engine oils rose by more than 40pc and motorcycle engine oils by more than 20pc.

The rise in engine oil consumption coincided with a sustained rise in gasoline demand over the past year as services and travel activity returned to normal following the removal of pandemic-related restrictions.

A 19pc drop in consumption of industrial oils in May balanced out the strong engine oil demand. The contraction was the 11^th in 12 months, with the pace of the slowdown speeding up since the start of the year.

The drop in the country’s industrial lube consumption has contrasted with firm industrial production growth in the three months to April.

Industrial production growth is expected to slow in the face of rising energy costs and as the temporary boost from restocking begins to fade.

The accelerating drop in industrial lube consumption adds to signs of slowing growth.

Lube consumption is seen as a bellwether for upcoming industrial activity.