Brazil’s lube demand fell in November for a sixth month in the face of slowing economic growth.

The sustained fall in consumption increased the risk of a build-up of base oils supplies during the final months of the year as a swathe of arbitrage shipments reached the country.

Lube demand of 89,970mᶟ (79,700t) in November fell by 2pc from year-earlier levels, according to IBP. The contraction lagged the 7pc fall in consumption to 970,180mᶟ in the first eleven months of the year.

Lube demand growth slowed throughout Latin America in the second half of the year especially in the face of rising interest rates to reverse high inflation.

Brazil’s lube demand stopped growing earlier than other markets in the region, with consumption contracting from the second quarter of the year.

Lube demand shrank even amid steady economic growth in the first half of the year.

The country’s automobile sales then rose steadily throughout the second half of the year.

But economic growth contracted in October for the second time in three months.

The country’s manufacturing purchasing managers’ index (PMI) fell in November to its lowest level since first-half 2020. The services PMI fell to an eighteen-month low.

Brazil’s automobile production rose in November for a seventh month. But the pace of the increase was the slowest since April.

Brazil’s lube consumption mirrored the widespread slowdown in manufacturing and services activity.

Sales of passenger car engine oils (PCMO) fell in November for a third month and by 10pc from year-earlier levels.

Sales of heavy-duty engine oils (HDEO) fell in November for an eighth month, reflecting the earlier slowdown in industrial activity. But the pace of the contraction was smaller than for PCMO sales.

Industrial oils consumption similarly fell but at its slowest pace in five months.