Spain’s February lube demand falls

Spain’s lubricating oil demand fell in February for the first time in four months, adding to signs of a region-wide slowdown in lube consumption.

Lube demand of 34,550t in February fell by 5pc from 36,350t the same time a year earlier, according to Spain’s CORES, which tracks the country’s energy stocks.

The drop in demand mirrored a similar slowdown in markets like Italy and France, where consumption of industrial lubricants has faced the most pressure.

The trend reflected a widespread slowdown in industrial activity in the face of increasingly high energy costs and rising inflation.

Spain’s industrial lube sales had already fallen more steeply than auto lube sales in 2020, then risen less strongly than auto lube sales in 2021.

Auto lube sales are likely to get support from a pick-up in Spain’s automobile sales. These climbed in February for a second straight month, after falling throughout second-half 2021.

The drop in lube demand contrasted with a strong rebound in Spain’s gasoil demand since early last year. The recovery has extended into the first two months of this year.

Unusually high diesel prices are already incentivizing refiners to produce more of the motor fuel instead of base oils. Strong demand for the fuel is likely to add to that incentive.