Spain’s March lube demand falls

Spain’s lubricating oil demand fell in March for a second month, adding to regionwide signs of a slowdown in consumption.

Lube demand of 38,810t in March fell by 8pc from 41,990t the same month a year earlier, according to Spain’s CORES, which tracks the country’s energy stocks.

The slowdown cut Spain’s lube consumption to 106,710t in the first quarter of the year, down 4pc from year-earlier levels.

The drop in lube consumption mirrors a similar slowdown in other regional markets like Italy as industrial activity ebbs in response to high energy costs, supply constraints and slowing consumption.

Spain’s industrial production grew in March at its slowest pace in five months. Its car sales slumped in March and extended their fall in April.

The country’s gasoil consumption slowed in March for the first time in 13 months. The last time that lube and gasoil demand contracted in the same month was in January 2021.

The weaker lube demand complicates blenders’ leverage to raise finished lube prices as they seek to pass on surging feedstock costs.

Regional base oil prices have risen sharply in recent months, especially for Group I supplies, in response to unexpectedly tight availability.