Italy’s lubricating oil demand rose in January for the first time in five months, pointing to an earlier-than-expected recovery in consumption.The sustained slump in Italy's lube demand during the second half of last year mirrored a similar trend throughout Europe..Spain’s December lube demand slumps.The slowdown prompted lube blenders to cut inventories and delay the procurement of base oil feedstock supplies at the start of this year.The strategy cut their exposure to the possibility of a prolonged slowdown in lube demand.It increased their exposure to the risk of tight supply if demand revived earlier than expected.Demand duly revived earlier than expected.Italy’s lube consumption of 29,400t in January rose from 27,700t the previous month and by 11pc from year-earlier levels, government data showed..Demand typically continues to rise over the first few months of the year amid a seasonal pick-up in industrial and transport activity.Italy’s passenger-car motor oil (PCMO) demand had continued to rise throughout the past year even as total lube demand fell.It extended that rise in January.There was also a rise in demand for lubricants that are more reflective of the state of the industrial sector.Consumption of heavy-duty engine oils (HDEO) rose in January for the first time in five months. Consumption of process oils rose for the first time in six months.The broader rise in consumption of different lubricants mirrored signs of firmer economic activity than expected at the start of the year as energy costs fell.Italy’s manufacturing purchasing managers’ index rose more than expected in January to a level that pointed to expansion for the first time since the middle of last year.The strong rebound extended to the rest of Europe, suggesting firmer-than-expected lube demand in other markets besides Italy.Europe’s base oils prices stayed unusually weak during the first two months of this year, reflecting a persistent supply surplus and weak demand.Those demand fundamentals contrast with the pick-up in lube consumption in Italy at the start of the year..Italy’s December base oils output falls
Italy’s lubricating oil demand rose in January for the first time in five months, pointing to an earlier-than-expected recovery in consumption.The sustained slump in Italy's lube demand during the second half of last year mirrored a similar trend throughout Europe..Spain’s December lube demand slumps.The slowdown prompted lube blenders to cut inventories and delay the procurement of base oil feedstock supplies at the start of this year.The strategy cut their exposure to the possibility of a prolonged slowdown in lube demand.It increased their exposure to the risk of tight supply if demand revived earlier than expected.Demand duly revived earlier than expected.Italy’s lube consumption of 29,400t in January rose from 27,700t the previous month and by 11pc from year-earlier levels, government data showed..Demand typically continues to rise over the first few months of the year amid a seasonal pick-up in industrial and transport activity.Italy’s passenger-car motor oil (PCMO) demand had continued to rise throughout the past year even as total lube demand fell.It extended that rise in January.There was also a rise in demand for lubricants that are more reflective of the state of the industrial sector.Consumption of heavy-duty engine oils (HDEO) rose in January for the first time in five months. Consumption of process oils rose for the first time in six months.The broader rise in consumption of different lubricants mirrored signs of firmer economic activity than expected at the start of the year as energy costs fell.Italy’s manufacturing purchasing managers’ index rose more than expected in January to a level that pointed to expansion for the first time since the middle of last year.The strong rebound extended to the rest of Europe, suggesting firmer-than-expected lube demand in other markets besides Italy.Europe’s base oils prices stayed unusually weak during the first two months of this year, reflecting a persistent supply surplus and weak demand.Those demand fundamentals contrast with the pick-up in lube consumption in Italy at the start of the year..Italy’s December base oils output falls
