Italy’s Jan lube demand falls

Italy’s finished lube sales fell in January for an eight straight month amid a slump in consumption of industrial oils.

Consumption of 26,500t in January fell by 18pc from year-earlier levels to a five-month low, government data showed.

The contraction followed an 8pc rise in lube sales in 2021.

But that increase in annual sales reflected the surge in demand in the first half of last year as easing lockdown measures helped to spur a strong rebound in economic growth. A low base level in 2020 also boosted the size of the rebound in 2021.

Demand slowed sharply during second-half 2021 as the low base effect waned and blenders sought to work down inventories.

Consumption of industrial oils began to fall from June 2021, and engine oils from July.

That trend has partly extended into the beginning of this year. Demand for industrial oils fell by 32pc in January amid a sharp slowdown in industrial production in the country.

Industrial activity slowed amid a surge in electricity and gas costs.

The fall in consumption of industrial oils contrasted with a 15pc rise in demand for engine oils in January.