Lubricating oil demand in Europe’s four largest economies rose in September for the first time in four months as higher consumption in Germany outweighed shrinking demand in the other markets.Consumption in Germany and in other markets got support from firm demand for passenger car engine oils (PCMO). The steady consumption contrasted with shrinking demand for industrial oils, including in Germany.The trend mirrored the different pace of the slowdown in Europe’s industrial and services activity.The prospect of a further drop in services activity during the final quarter of the year suggested the recent firm demand for PCMO was likely to wane.Any such slowdown would compound the impact of shrinking industrial oils consumption.The slowdown would coincide with a seasonal dip in lube demand at year-end and incentivize blenders to manage their base oil feedstock inventories increasingly carefully.European base oils prices fell in recent weeks as weak demand outweighed any moves to limit the volume of surplus supplies.Total September lube consumption of 188,580t in Germany, France, Italy and Spain combined rose by 7pc from year-earlier levels, government and industry data showed. The increase was just the second in the last 13 months..The rise in demand lifted total consumption to 424,610t in the third quarter of the year. The quarterly volume rose from year-earlier levels for the first time since first-half 2021.The improvement in demand was likely an outlier. It mostly reflected a further rise in engine oils consumption in Germany. .Germany’s Sept lube demand mixed.Automobile oils demand also rose in France and fell only slightly in Italy.The firm demand contrasted with a sharper slide in industrial oils consumption in all those markets.The earlier fall in industrial oils demand coincided with a drop in the Euro area’s manufacturing purchasing managers’ index (PMI) to a level that indicated contraction in July.The region’s services PMI fell to a level that indicated contraction in August. It extended the slowdown every month since then. But it remained higher than the manufacturing PMI.The region’s retail sales also fell in October from the previous month at their fastest pace this year.The lower sales added to signs of a slowdown in consumer demand that had helped to support firmer PCMO consumption..Italy’s October lube demand falls
Lubricating oil demand in Europe’s four largest economies rose in September for the first time in four months as higher consumption in Germany outweighed shrinking demand in the other markets.Consumption in Germany and in other markets got support from firm demand for passenger car engine oils (PCMO). The steady consumption contrasted with shrinking demand for industrial oils, including in Germany.The trend mirrored the different pace of the slowdown in Europe’s industrial and services activity.The prospect of a further drop in services activity during the final quarter of the year suggested the recent firm demand for PCMO was likely to wane.Any such slowdown would compound the impact of shrinking industrial oils consumption.The slowdown would coincide with a seasonal dip in lube demand at year-end and incentivize blenders to manage their base oil feedstock inventories increasingly carefully.European base oils prices fell in recent weeks as weak demand outweighed any moves to limit the volume of surplus supplies.Total September lube consumption of 188,580t in Germany, France, Italy and Spain combined rose by 7pc from year-earlier levels, government and industry data showed. The increase was just the second in the last 13 months..The rise in demand lifted total consumption to 424,610t in the third quarter of the year. The quarterly volume rose from year-earlier levels for the first time since first-half 2021.The improvement in demand was likely an outlier. It mostly reflected a further rise in engine oils consumption in Germany. .Germany’s Sept lube demand mixed.Automobile oils demand also rose in France and fell only slightly in Italy.The firm demand contrasted with a sharper slide in industrial oils consumption in all those markets.The earlier fall in industrial oils demand coincided with a drop in the Euro area’s manufacturing purchasing managers’ index (PMI) to a level that indicated contraction in July.The region’s services PMI fell to a level that indicated contraction in August. It extended the slowdown every month since then. But it remained higher than the manufacturing PMI.The region’s retail sales also fell in October from the previous month at their fastest pace this year.The lower sales added to signs of a slowdown in consumer demand that had helped to support firmer PCMO consumption..Italy’s October lube demand falls
