Mexico’s lube demand fell for a ninth month in January amid an ongoing slide in consumption of automobile lubricants.The fall in demand compounded the impact of Mexico’s moves to implement tighter restrictions on the country’s base oils imports from the fourth quarter of last year.US base oil exports to Mexico duly fell sharply in recent months.The subsequent narrowing of the gap between Mexico’s lube demand and US base oils exports to the country suggested its imports of the lubricants feedstock could start to stabilize.The country’s lube consumption of more than 50,000 kilolitres (45,000t) in January fell by 13pc from year-earlier levels, government data showed.The contraction slowed from a 24pc fall the previous month.Demand fell mostly because of a 20pc slide in consumption of automobile lubricants. Demand for industrial oils fell at a slower 5pc pace.The slower pace of the contraction coincided with signs of improving economic activity in Mexico compared with the end of last year.Mexico’s economic activity indicator edged up in January from a two-year low the previous month. The country’s industrial production rose at a faster pace in January, reflecting that improvement.The pace of the fall in the country’s lube demand also lagged the 36pc drop in US base oils exports to Mexico in January.The steep contraction slashed the surplus of US base oils exports over Mexico’s lube demand to the narrowest level in thirteen months.Mexico is almost entirely reliant on overseas supplies to cover its base oils requirements. The US is the source of almost all those supplies.The small gap between US supply and Mexico’s demand raised the prospect of steadier US export volumes over the following months..US’ January base oils exports fall
Mexico’s lube demand fell for a ninth month in January amid an ongoing slide in consumption of automobile lubricants.The fall in demand compounded the impact of Mexico’s moves to implement tighter restrictions on the country’s base oils imports from the fourth quarter of last year.US base oil exports to Mexico duly fell sharply in recent months.The subsequent narrowing of the gap between Mexico’s lube demand and US base oils exports to the country suggested its imports of the lubricants feedstock could start to stabilize.The country’s lube consumption of more than 50,000 kilolitres (45,000t) in January fell by 13pc from year-earlier levels, government data showed.The contraction slowed from a 24pc fall the previous month.Demand fell mostly because of a 20pc slide in consumption of automobile lubricants. Demand for industrial oils fell at a slower 5pc pace.The slower pace of the contraction coincided with signs of improving economic activity in Mexico compared with the end of last year.Mexico’s economic activity indicator edged up in January from a two-year low the previous month. The country’s industrial production rose at a faster pace in January, reflecting that improvement.The pace of the fall in the country’s lube demand also lagged the 36pc drop in US base oils exports to Mexico in January.The steep contraction slashed the surplus of US base oils exports over Mexico’s lube demand to the narrowest level in thirteen months.Mexico is almost entirely reliant on overseas supplies to cover its base oils requirements. The US is the source of almost all those supplies.The small gap between US supply and Mexico’s demand raised the prospect of steadier US export volumes over the following months..US’ January base oils exports fall