Global lube demand faces Q3 slowdown

Lubricating oil demand in Latin America, Europe and Asia is set to fall sharply in the third quarter of the year as slowing economic growth compounds a seasonal slowdown in consumption.

Lube demand is likely to fall below 3.0mn t in the three regions in the third quarter of the year, according to the Baseoilnews.com short-term outlook.

The volume woud be down from more than 3.10mn t during the three months to end-June.

Lube demand exceeded 3.2mn t during the third quarter of 2022.

The Asia demand volume excluded China.

Lube consumption in the second quarter was already down from more than 3.60mn t during the first three months of the year.

The drop in demand raised the prospect of a rise in surplus base oils supplies unless output also adjusted lower accordingly.