Lubricating oil demand in the Americas rose in November for a fourth month, adding to the attraction of targeting the region with more base oils supplies.

Demand held firm even as countries in the region faced slowing economic growth and rising interest rates to reverse high inflation.

Total lube consumption in November came to more than 610,000t in the US, Mexico, Brazil and Argentina combined, government and industry data showed.

The 1pc rise in demand from year-earlier levels contrasted with a 6pc fall in lube demand in key European markets like Germany and a slowdown in consumption in southeast Asia.

Chinese lube demand also fell sharply throughout most of 2022.

Slowing demand in those other markets triggered a swathe of base oils shipments to the Americas from Asia-Pacific especially during the third quarter of last year.  

The firm lube consumption throughout the Americas limited any build-up of surplus base oils supplies at end-2022 even with the addition of the shipments from Asia.

Tighter availability of base oils supplies from the US and Asia-Pacific during the final months of 2022 cut further any supply-build.

The steady lube consumption and balanced supply raised the prospect of firm demand for base oils during the first few months of 2023.

The rise in lube demand in November mostly reflected steady US consumption during the second half of the year.

Lube consumption in Latin America fell in November for a third month. The 0.8pc contraction from year-earlier levels was the smallest in four months.

Brazil’s lube demand then rose in December.

Latin America’s lube demand of 1.64mn t in the first eleven months of the year rose by 2pc from 1.61mn t during the same period in 2021.

The firmer demand contrasted with a 3pc fall in Europe’s lube consumption during the same period.