Europe’s lubricating oil demand fell at its slowest pace in four months in January and rebounded from the previous month, eating into blenders’ feedstock supplies.Weak demand, healthy base oils supply and falling prices deterred blenders from replenishing their feedstock inventories during the first few months of the year.They preferred instead to consume existing inventories even as lube demand rose in January from the previous month. A seasonal rise in demand was likely to continue over the following months..The move to hold off replenishing stocks, and the rise in consumption at the start of the year, raised the prospect of blenders’ stocks falling to lower levels than usual.Blenders were more comfortable with that scenario than with holding larger stocks.But it exposed them to the risk of higher prices when they sought to replenish their stocks.The scenario showed signs of materialising amid more balanced supply fundamentals in Europe after refiners moved a swathe of surplus supplies to overseas markets during the first quarter of the year.Crude and diesel prices then rebounded from the start of this week.Refiners’ more balanced supplies and expectations of higher prices curbed their urgency to clear additional volumes.Blenders’ low stocks, concern about higher prices, and the prospect of a further seasonal rise in lube consumption increased their need to cover requirements.Steady supply, firm demand and rising feedstock costs raised the prospect of higher prices..Europe’s January lube demand falls
Europe’s lubricating oil demand fell at its slowest pace in four months in January and rebounded from the previous month, eating into blenders’ feedstock supplies.Weak demand, healthy base oils supply and falling prices deterred blenders from replenishing their feedstock inventories during the first few months of the year.They preferred instead to consume existing inventories even as lube demand rose in January from the previous month. A seasonal rise in demand was likely to continue over the following months..The move to hold off replenishing stocks, and the rise in consumption at the start of the year, raised the prospect of blenders’ stocks falling to lower levels than usual.Blenders were more comfortable with that scenario than with holding larger stocks.But it exposed them to the risk of higher prices when they sought to replenish their stocks.The scenario showed signs of materialising amid more balanced supply fundamentals in Europe after refiners moved a swathe of surplus supplies to overseas markets during the first quarter of the year.Crude and diesel prices then rebounded from the start of this week.Refiners’ more balanced supplies and expectations of higher prices curbed their urgency to clear additional volumes.Blenders’ low stocks, concern about higher prices, and the prospect of a further seasonal rise in lube consumption increased their need to cover requirements.Steady supply, firm demand and rising feedstock costs raised the prospect of higher prices..Europe’s January lube demand falls
