Brazil’s lubricating oil demand fell for a fifth month in October amid sliding consumption of industrial oils.

The slowdown in lube demand contrasted with signs of sustained economic growth in recent months.

It tallied more closely with signs of a slowdown in economic growth next year in the face of high interest rates and slowing global growth.

The drop in demand complicated base oils producer and importers’ supply plans as they sought to avoid a buildup of surplus feedstock volumes.

The lower consumption also squeezed overseas base oils producers’ options in the face of weaker demand in a growing number of global outlets.

Brazil’s lube demand of 86,400mᶟ (76,530t) in October fell by 2pc from year-earlier levels, according to IBP.

The fall in consumption for the sixth month in seven cut the country’s total demand to 880,210mᶟ in the first 10 months of the year.

The volume was down 7pc from 945,690mᶟ during the same period last year.

The lower demand reflected more a sharper fall in consumption of industrial oils and heavy-duty engine oils (HDEO), which is considered a bellwether for industrial activity.

Industrial oils demand fell by 7pc in October and HDEO sales by 9pc.

The slowdown followed a drop in Brazil’s industrial production in September for a second month.

The country’s manufacturing purchasing managers’ index (PMI) for October pointed to ongoing expansion. But it still declined for a fifth month to its lowest since February.

Signs of weaker manufacturing activity contrasted with a rise in economic activity in September along with a pick-up in retail activity.

The country’s automobile sales rose in September for a third month and extended that rise in October.

Brazil’s services PMI rebounded in October to its highest in three months.

The country’s passenger car motor oil (PCMO) consumption fell in October.

But the 2pc contraction was smaller than the drop in industrial oils and HDEO sales. It also improved from a 10pc contraction in August.

The trend mirrored a similar pattern in Europe, where manufacturing activity and industrial oil demand faced more pressure than services activity and PCMO demand.