Brazil’s lubricating oil demand fell in June, extending a period of uneven growth as the country’s economy faces increasing pressure from rising interest rates.

Lube demand of 85,370mᶟ (75,620t) in June fell by 5pc from 89,660mᶟ during the same month a year earlier, according to IBP.

Demand has now risen slightly in two of the last four months and fallen slightly during two of those months.

The pattern contrasted with a steep drop in demand during the six months to February.

The bumpy demand growth in recent months mirrored the country’s contrasting economic signals.

Brazil’s industrial production growth turned positive in May for the first time in ten months. Economic activity grew that month at a faster pace than in April.

Auto sales shrunk in June for an eleventh month. But the pace of the contraction was slower than during most of the past year.

Private consumption is set to face more pressure over the coming months after the central bank raised interest rates to the highest since 2017 to curb high inflation.

A growing number of other countries are employing a similar strategy to curb inflation. The countries are facing similar consequences to that move.

The drop in Brazil’s lube demand in June included automobile and industrial oils.

The 14pc slide in demand for heavy duty engine oils was the steepest. The product is often seen as a bellwether for the state of the road freight market.

Consumption of HDEO has now fallen in 12 of the last 13 months. The trend cut its share of lube sales to 24pc of total consumption. The share was the lowest in more than five years.