Brazil’s lubricating oil demand rose in March for the first time in seven months amid a rebound in consumption of engine oils.
Lube demand of 112,310mᶟ (99,490t) in March rose by 43pc from 78,750mᶟ the previous month to the highest in at least five years, according to IBP.
Lube consumption in March was also up 1pc from year-earlier levels. It had previously fallen every month since last September and by more than 20pc in January and in February.
Brazil’s lube demand typically rises sharply in the month of March from the previous month.
The sharp rebound this year was against the backdrop of shrinking automobile sales and weak industrial production.
Brazil’s auto sales fell in March for an eight straight month and by more than 20pc for the sixth time in seven months. The country’s industrial production fell in February for a seventh straight month.
Brazil’s base oil supply had fallen sharply in recent months in response to the country’s shrinking lube demand. The drop in base oils production and imports has cut the country’s surplus supply to its lowest since 2020.
The rise in lube consumption in March comes at a time when global base oil prices have surged and surplus availability in overseas markets has tightened.
