Spain’s lube demand fell in March for the first time in ten months, mirroring a slowdown in consumption in other regional markets like Italy and Portugal.The slowdown in Europe’s lube consumption bottomed out then began to reverse in the final months of last year mostly because of a sustained pick-up in demand in markets like Spain and Italy.The recovery in demand in those markets from the middle of last year countered ongoing weakness in key outlets like Germany and France.The drop in consumption in Spain and Italy in March raised the prospect of extending last year’s slowdown in Europe’s lube demand unless consumption revives in other markets.Any further slowdown in demand would add to blenders’ focus on maintaining low stocks and replenishing inventories with small volumes more frequently.Muted demand would similarly incentivize base oils suppliers to limit their stocks amid more limited leverage to maintain prices at levels that covered their costs.The drop in consumption coincided with and likely cushioned the impact of lower-than-usual supply of premium-grade base oils in Europe during the first quarter of the year.Spain’s lube consumption of 34,900 tonnes in March fell by 17% from year-earlier levels, according to CORES, which tracks the country’s energy stocks.The year-on-year contraction was the first since May 2023.Lube consumption fell from 36,800 tonnes in February, contrasting with a typical seasonal rise in demand in the month of March from the previous month.The last time that Spain's consumption fell in the month of March from February was in 2020, when pandemic-related lockdowns disrupted typical demand patterns.Lube demand in Italy and Portugal was also unusually weak in the month of March compared with February..Italy’s March lube demand falls
Spain’s lube demand fell in March for the first time in ten months, mirroring a slowdown in consumption in other regional markets like Italy and Portugal.The slowdown in Europe’s lube consumption bottomed out then began to reverse in the final months of last year mostly because of a sustained pick-up in demand in markets like Spain and Italy.The recovery in demand in those markets from the middle of last year countered ongoing weakness in key outlets like Germany and France.The drop in consumption in Spain and Italy in March raised the prospect of extending last year’s slowdown in Europe’s lube demand unless consumption revives in other markets.Any further slowdown in demand would add to blenders’ focus on maintaining low stocks and replenishing inventories with small volumes more frequently.Muted demand would similarly incentivize base oils suppliers to limit their stocks amid more limited leverage to maintain prices at levels that covered their costs.The drop in consumption coincided with and likely cushioned the impact of lower-than-usual supply of premium-grade base oils in Europe during the first quarter of the year.Spain’s lube consumption of 34,900 tonnes in March fell by 17% from year-earlier levels, according to CORES, which tracks the country’s energy stocks.The year-on-year contraction was the first since May 2023.Lube consumption fell from 36,800 tonnes in February, contrasting with a typical seasonal rise in demand in the month of March from the previous month.The last time that Spain's consumption fell in the month of March from February was in 2020, when pandemic-related lockdowns disrupted typical demand patterns.Lube demand in Italy and Portugal was also unusually weak in the month of March compared with February..Italy’s March lube demand falls
