Brazil’s lubricating oil demand fell in August for a third month and its fastest pace in six months amid a sharp slowdown in consumption of industrial oils.
Total lube demand of 85,600mᶟ (75,830t) in August fell from 91,950mᶟ the previous month and by 7pc from year-earlier levels, according to IBP.
The slowdown cut total lube consumption to 708,710mᶟ in the first eight months of the year, down 6pc from 755,020mᶟ during the same period last year.
The fall in lube demand tallied with expectations of slowing economic growth during the second half of the year.
The slower growth mirrored a similar trend in other Latin American countries and raised the prospect of a more widespread drop in requirements for base oils supplies.
Brazil’s lube demand had been steady in the second quarter of the year, when the country’s economy grew faster than expected.
Economic growth has faced increasing pressure from interest rates that were raised in August to their highest in more than five years.
At the same time, economic activity rose more strongly than expected in July, led by strong growth in the services sector.
The country’s automobile sales and production also rose strongly in August, while consumer prices eased.
Industrial production fared less well, dipping in July for the 11th time in 12 months. But it rose from June levels.
Industrial oils consumption led the slowdown in lube demand in August. The 14pc fall in consumption was the steepest drop in more than two years.
Consumption of heavy-duty engine oils (HDEO) fell by 9pc. HDEO is often seen as a bellwether for the state of industrial activity.
Demand for passenger car motor oils bucked the trend, with consumption rising by 3pc in August.
