Argentina’s lubricating oil demand rose in January for the first time in four months even as the country’s economic growth slowed.

The fall in lube demand in the fourth quarter of last year mirrored a sustained slowdown economic and industrial activity from last September.

The rise in lube demand in January contrasted with those trends and added to a pick-up in consumption in the Latin American market.

Firmer demand in Argentina and Brazil contrasted with a seasonal slowdown in lube consumption in the US and a slump in lube demand in Europe at the end of last year.

The stronger demand provided US refiners especially with the opportunity to cushion the impact of slower buying interest in other markets by moving more base oils supplies to Latin America.

Argentina’s lube consumption of more than 21,000mᶟ (18,870t) in January rose from less than 19,700mᶟ in December and by 8pc from year-earlier levels, government data showed.

Lube demand rose even as the country’s economy faced unusually high interest rates that struggled to match even higher inflation.

Economic activity grew in December at its slowest pace in almost two years.    

The slowdown in growth was forecast to continue this year, reflecting the pressure of high interest rates and inflation.

There were some signs of a pick-up in activity in January.

The country’s automobile sales rose in December at their slowest pace in ten months. The rise in sales then gathered pace in January.

Automobile production shrank in December for the first time in eleven months, before rebounding in January.

Argentina’s lube demand rose against the backdrop of those firmer signs of activity.

Automobile lube consumption rose in January for a second month and at its fastest pace since last August.

Industrial oils demand rose more slowly. But the pick-up in consumption in January was its first increase in four months.