Europe’s lubricating oil consumption is set to rise over the coming months amid a seasonal pick-up in demand and as blenders replenish low stocks after holding off such moves for longer than usual.
Lube demand is likely to rise to close to 650,000t in the second quarter of the year, up from around 630,000t during the first three months, according to the Baseoilnews.com short-term outlook.
Consumption would be up from 576,720t during the fourth quarter of last year.
The volume consists of combined demand from seven European countries.
The seasonal rise in demand is set to absorb more regional base oils supplies, curbing availability for export.
The price impact may be more muted this year amid signs of blenders’ preference to procure smaller volumes more frequently.
The move gives them more flexibility to respond to changes in demand. It also assumes regular availability of supply.
