“The plant has started and is running well, producing at higher rates than with the older catalyst,” a market source confirmed. Additional Group II products coming into the market were expected to place pressure on prices.

Paraffinic posted prices remained steady, with very few revisions having taken place over the year. On the other hand, spot prices of most grades have seen downward adjustments week-on-week given more plentiful supplies and a need for suppliers to find a home for their base oils before the end of the year, when tax assessments take place.

Participants were also monitoring crude oil prices as futures have been swayed by geopolitical tensions, international sanctions on Russian exports, and controlled output increases from OPEC+ member countries over the last few weeks, but prices have been moving within a fairly narrow range and remained below earlier predictions for the year.

Group I
The supply and demand balance in the Group I segment was tighter than in the Group II segment, partly because of a fairly recent unplanned outage at a domestic plant and because of continuous demand for most grades, despite a slowdown in manufacturing rates affecting industrial lubricants and metalworking fluids.

Given replacement limitations, bright stock continued to enjoy healthy buying interest and prices were steady. An unexpected uptick in bright stock requirements from Brazil due to an unplanned outage at a local base oils plant also contributed to tightening supplies in the U.S.

Supplies of the Group I heavy grades were more abundant than for the light grades, but were not overflowing by any means. Suppliers had hoped to find Group I takers in Europe for some small spot export cargoes that cropped up here and there, but European inventories were plentiful and demand was sluggish in that region as well. There were discussions going on for potential shipments to West Coast South America and Africa.

U.S. producers continued to work on regular shipments to Mexico, even though requirements were somewhat disappointing at a time when Mexican buyers typically look to acquire additional supplies from U.S. producers who are open to price negotiations as they hope to reduce extra inventories. The Group I supply overhang was more limited than for other grades and price discounts were more limited. Difficulties with the renewal of Mexican import licenses also dampened business.

Buying appetite from Brazil for U.S. base oil barrels showed an uptick because of an unexpected shutdown at a key producer’s plant. This coincided with increased buying interest from buyers in Argentina after a fire in the country’s largest refinery earlier this month forced the unit to shut down for at least two weeks. The fire at the YPF refinery in La Plata, in the province of Buenos Aires, on November 4 was confined to the distillation “Topping D” area of the refinery. The flames were quickly extinguished and no injuries were reported, according to local media. It could not be ascertained whether the production of feedstocks for base oils had been affected, but buyers have been on the lookout for spot supplies in case of disruptions.

Group II
The restart of the Excel Paralubes plant in Louisiana brought additional Group II/Group III barrels into the supply system and spot prices came under pressure, according to sources. The plant, which had been running at reduced rates for most of the year, was expected to increase rates after the catalyst change, and the producer was also expected to be pressured to place the additional volumes at a time when demand is typically lackluster. There was no producer confirmation about the plant’s operations or supply plans, however.

Spot prices for Group II base oils lost ground week-on-week, with most grades slipping between 4-10 cents per gallon. There was also increasing competition between virgin and rerefined base oils, although the extra rerefined supplies appeared to be mostly of the light grades, and this was weighing on spot indications. A turnaround at a rerefining unit this month could temporarily tighten supplies.

The light material remained on the tight side from virgin Group II producers, particularly as they prioritized the production of Group II+ cuts to meet PCMO and HDEO specifications and yields were reduced, according to sources. Group II 220N was “more balanced than many would have presumed,” a source noted. The 600N showed more significant length and this was placing additional pressure on spot prices.

Motiva was also heard to have rebuilt inventories following a shutdown at its Group II/Group III unit in Port Arthur, Texas, in August/September, which had tightened spot supplies. The supplier appeared to have achieved a more balanced supply position on most grades, although there was no direct producer confirmation.

Group III
Spot prices for Group III grades have started to fray as this segment has become oversupplied. Imports from Canada, Asia and the Middle East continued to arrive in the U.S. and demand wasn’t strong enough to absorb the extra availability. Group III base oils consumption from the PCMO segment has slowed down in line with reduced driving activity during the latter part of the year, and this, coupled with Group III availabilities from domestic producers, dampened U.S. demand for imports.

Spot prices for the Group III cuts slipped by around 5 cents per gallon week on week, according to sources. Increased availability of Group II and Group II+ cuts at attractive levels was also competing with Group III pricing. There was heightened competition between products that have official approvals and base oils that are not fully approved, but are of similarly high quality.

The impact of Excel Paralubes’ turnaround at its Group II and Group III plant in Lake Charles, Louisiana, this month was limited as the unit produces Group III base oils for the company’s own internal consumption. Excel Paralubes does not comment on its production status.

Naphthenics
Naphthenic prices have edged down because of soft crude oil prices and increased availability of most grades. Lackluster interest for U.S. products in other regions also dampened export opportunities. The return to production of a key naphthenic base oil plant seemed to have tipped the supply and demand balance that had been observed in October, and the extra availabilities were exerting downward pressure on prices.

Ergon’s naphthenic base oils plant in Vicksburg, Mississippi, had been shut down from early September to undergo a comprehensive maintenance and upgrade program. The unit restarted in mid-October and was heard to be running well, allowing for additional product to enter the domestic supply stream. The company had built inventories to cover contract commitments before starting the turnaround, but spot supply from the producer had been restricted for several weeks.

Crude Oil
Crude oil futures were trading at lower levels on Wednesday morning on lingering concerns about oversupply, despite optimism that a reopening of the U.S. government after the longest-ever shutdown would boost economic activity and lead to increased oil demand.

• West Texas Intermediate December 2025 futures settled on the Nymex at $61.04 per barrel on Nov. 11, up from $60.56/bbl for front-month futures on Nov. 4.
• Brent futures for January 2026 delivery were trading on the ICE at $64.61/bbl on Nov. 12, down from $64.89/bbl for front-month futures on Nov. 5.
• Louisiana Light Sweet crude wholesale spot prices were hovering at $61.44/bbl on Nov. 7. Spot prices had settled at $62.79/bbl on Nov. 3, according to the U.S. Energy Information Administration. The EIA had not published Nov. 10 settlements by the publishing deadline.

Diesel
Low-sulfur diesel wholesale, Nov. 7 (Nov. 3), EIA
New York Harbor: $2.53/gal ($2.46/gal)
Gulf Coast: $2.39/gal ($2.32/gal)
Los Angeles: $2.68/gal ($2.51/gal)

Gabriela Wheeler can be reached directly at gabriela@LubesnGreases.com

LNG Publishing Co. Inc./Lubes’n’Greases shall not be liable for commercial decisions based on the contents of this report.

Posted Paraffinic Base Oil Prices November 12, 2025

(Prices are FOB basis, in U.S. dollars per gallon and U.S. dollars per metric ton).

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