· US gasoline demand rises in 2H June for fourteenth week..· US blenders show signs of preference to hold lower stocks in coming weeks as prospect of seasonal slowdown counters concern about weather-related disruptions.· Demand for US base oils could get more sustained support from Latin America and Africa as competitive prices attract buyers, keep arbitrage shut from sources like Asia.· More workable arbitrage for US base oils supplies could cushion likely slowdown in lube consumption in Latin America.· Latin America’s May automobile sales fall year on year for first time in thirteen months, adding to signs of regionwide slowdown in economic activity.· Slowdown in economic activity contrasts with firmer-than-expected lube demand in Brazil and Argentina in May..· Trend could reflect artificial rise in spending in response to high inflation.· Global base oils exports to Nigeria rise to thirteen-month high in April as buyers lock in surplus supplies from US and Europe..· Nigerian buyers will likely need to rely more on supplies from US over coming months in face of tighter spot availability of Group I base oils in Europe.· Prospect of tighter supplies from Europe for Nigeria also likely to boost interest in any shipments of Russian origin.· Italy’s May lube demand falls for eighth time in nine months as sliding automobile oils consumption outweighs firmer industrial oils demand..· Trend contrasts with the past year, when automobile oils demand mostly rose and industrial oils demand fell.· Trend during that time reflected relative strength of services sector and weakness of manufacturing sector.· Latest trend suggests strength of services sector may be waning.· Any extension of that trend to other markets in Europe could compound slowdown in lube demand over past year..Global base oils – week of July 3: Price outlook - margins.Contact us for more information about the data for these stories.Base Oil News stories and analysis also available on ICIS platform
