Italy’s September lube demand falls

Italy’s lubricating oil demand fell in September at its fastest pace in five months as a sustained drop in industrial oils consumption gathered pace.

Total lube demand of 33,000t in September fell by 8pc from year-earlier levels, government data showed.

The drop in demand left lube consumption of 283,400t in the first nine months of the year down 6pc versus the same period last year.

The country’s lube demand fell in three of the last four months as firmer automobile lube consumption began to wane.

Industrial lube demand fell in September for a twelfth straight month.

The slowdown mirrored a similar pattern in other markets in Europe, where the drop industrial oils demand outpaced a more muted slowdown in engine oil consumption.

Firmer automobile oils demand partly reflected support from the services sector following the removal of pandemic restrictions earlier this year, and then a boost from the tourism sector during the summer months.

Italy’s automobile oils demand contracted in September as support from those various factors waned. The contraction was the first in five months.

Even then, consumption of passenger car engine oils continued to rise.

The country’s industrial sector by contrast faced growing pressure from rising energy costs since early this year. Italy’s manufacturing purchasing managers’ index for September held at levels for a third month that pointed to contraction.

Italy’s 14pc drop in industrial oils demand in September was the steepest contraction in four months. The slowdown reflected shrinking consumption of hydraulic oils, metalworking fluids and process oils.

Falling lube consumption throughout Europe coincided with easing base oils supply tightness in the region. The growing disconnect between supply and demand has put sustained pressure on base oils prices.