Thailand June lube demand extends rise

Thailand’s lube demand extended its rise in June for a fourth month amid firm economic growth and improving consumer confidence.

Lube consumption of 60,600 kilolitres (47,010t) in June was almost the same as the previous month and rose by 9pc from year-earlier levels, government data showed.

The sustained rise in lube demand lifted consumption to 349,840kl in the first half of the year. The volume was up 5pc from year-earlier levels and the highest for that period in more than a decade.

Lube consumption has risen along with reviving economic activity and expectations that growth will continue to gather pace.

Thailand’s industrial production rose in June from the previous month at its fastest pace this year.

The country’s purchasing managers index rose in July for a seventh month and at its fastest pace since February.

Tourist arrivals in June surged from May to their highest since early 2020.

Lube consumption reflected that pick-up in manufacturing and services activity.

Engine oil consumption rose in June for a fourth month.

Thailand’s lube consumption typically peaks in the month of March ahead of the Songkran festival in April. Excluding the month of March, engine oil demand in June was the highest in at least a decade.

Consumption of industrial oils rose in June for a fourth month and at a faster pace than engine oils.

Strong lube demand in southeast Asian countries like Thailand and Vietnam has prompted regional base oil producers to redirect more of their shipments to those markets rather than to outlets like China.