Thailand’s May lube demand rises

Thailand’s lube demand rose in May for a third month as the steady easing of pandemic-related restrictions boosted economic activity.

Lube demand of 60,770 kilolitres (53,830t) in May rose by 16pc from year-earlier levels, government data showed. The volume was also well above typical volumes of around 51,200 kl/month over the past year.

The rise in demand boosted consumption to 188,690kl in the three months to May. The volume was up 13pc from year-earlier levels and the highest for that period in at least a decade.

The stronger demand mirrored a similar trend among other markets in southeast Asia following the relaxation of Covid-19 measures.

Regional base oils supply has been more than sufficient to meet that demand.

Thailand’s economic recovery is forecast to continue through the rest of the year amid firm domestic consumption, strong exports, and a gradual recovery in the tourism sector.

But rising inflation is starting to put pressure on those expectations.

Consumer sentiment slipped in May to a nine-month low and industrial sentiment to a seven-month low. The country’s industrial production unexpectedly contracted in May for a second month.

Those concerns have so far yet to impact the country’s lube consumption.

A 30pc surge in demand for passenger car engine oils in May led the rise in consumption. Demand for heavy-duty engine oils rose by 11pc and for other lubricants by 18pc.