Weekly Asia Base Oil Price Report

Crude oil futures showed little change over the week, but were expected to remain under pressure as Opec+ looked set to maintain or slightly increase output early next year. Demand from China, the largest crude oil importer, remained strong in November. Heavy crude prices could increase if tensions between the United States and Venezuela escalate.

Diverse economic conditions were expected to impact base oil market activity differently in countries across Asia. In some nations such as India and Indonesia, the automotive industry was thriving and lubricant demand was anticipated to remain strong. In other countries such as China, where vehicle electrification has reached significant levels, PCMO demand was forecast to plummet, but other applications such as immersion cooling fluids for data centers were expected to remain robust. However, China built hundreds of data centers to take advantage of the AI boom, and now many of them are dormant, as funding from investors is falling amid poor returns, with many of the companies running the data centers struggling to stay afloat, according to an article in MIT Technology Review.

“Data centers need to be located near major tech hubs to minimize transmission delays and ensure access to highly skilled operations and maintenance staff,” the article explained, but many of these centers were built far from these tech hubs in rural China, where land and electricity are cheaper.

Additionally, tariffs imposed by U.S. President Donald Trump and sanctions on Russian oil exports have also affected Indian crude oil imports, which, in turn, could affect base oil production and pricing. Trump has pressured India to reduce Russian oil imports, and the sanctions on Rosneft and Lukoil announced in October have forced Indian refiners to look for alternative sources of oil and pay steeper prices.

Group I
API Group I supplies continued to be on the tight side, providing some support to prices. The heavy grades were more readily available, however, and this has led to some downward adjustments as suppliers hoped to entice buyers.

Several Southeast Asian producers offered small spot cargoes, some of them through tenders. However, buying interest remained sluggish as buyers were cautious about acquiring additional cargoes at the end of the year, and some deemed the offers to be too high.

A Thai producer offered a 100-metric ton parcel of SN500 at $950 per metric ton FCA Thailand and a bright stock cargo of similar size at $1,330/t FCA Thailand for January shipment during the week. These prices were valid until Dec. 3 and reflected a small decrease from the previous week’s offer for SN500 at $960/t FCA Thailand and bright stock at $1,335/t FCA.

An Indonesian refiner was also heard to have offered Group I SN130 and bright stock cargoes through a tender that closed on Dec. 4. It could not be confirmed whether the tender had been awarded by the publishing deadline.

There were rumblings of a Japanese producer offering a Group I bright stock cargo as well, but the supplier does not typically sell base oils as it consumes most of its base stocks in downstream operations and often procures additional spot cargoes. It was not clear whether the supplier might have been long on supplies.

There were also reports that a Chinese refiner would be presenting a tender involving larger amounts of Group I heavy-viscosity base oils and Group II light grades for December lifting in South China.

While buying interest for Group I cargoes was slightly soft in Asia, there has been increased appetite for shipments going to the Middle East, despite this region having its own production. The interest was partly attributed to a plant turnaround taking place at a base oils unit in Saudi Arabia.

Group I ex-tank prices remained under pressure in China because of competition among suppliers and a need to place product, with the heavy grades reflecting larger decreases. Imported bright stock was also plentiful despite recent shortages as imports and domestic production have improved, while demand has shown a seasonal slowdown. Nevertheless, domestic bright stock prices seemed to have stabilized. The price of imports of other grades has slipped because of competition with domestic supplies, with bright stock of Thai origin and SN500 imports from Taiwan offered at attractive levels.

In India, Group I heavy-grade prices were softer because of competitively-priced Group II values of equivalent grades. Buyers preferred to buy Group II grades as these cuts offer enhanced performance. Additionally, Group I supplies from the Middle East have tightened because of a turnaround at a plant in Saudi Arabia, but the producer was anticipated to restart the plant before the end of the month and increased spot supplies should become available in January 2026.

A key Indian producer has adjusted domestic prices for the Group I SN500 and bright stock down, while it raised prices for the 150N. Along similar lines, imported SN500 slipped by about $5-10/t on a CFR India basis, while the SN150 and bright stock were steady.

Group II
Sluggish demand and high operating rates at most plants have resulted in mounting Group II inventories, particularly for the heavy grades, causing prices to move down a notch. Similar conditions were present in other regions as well, so it was difficult for suppliers to find a home for their extra cargoes elsewhere.

In China, there has been an increase in Group II production ever since several plants were built as the country tried to reduce its dependence on imports. While base oils were still flowing into China from other origins such as South Korea and Taiwan, the volumes have fallen.

Domestic Group II heavy-grade prices have lost ground as sellers tried to lure buyers, while prices for the light grades remained relatively stable. Buying activity was anticipated to be lackluster until before the Lunar New Year holidays in mid-February, when some blenders start to build inventories ahead of the start of the busy spring lubricant production season.

In India, plentiful supplies of the heavy grades also applied pressure on pricing. A key local producer has increased domestic prices for the light grades, while prices for the 500N were lowered. Similarly, import prices for the Group II 70N grade inched up by about $5/t on a CFR India basis, the 150N was steady, and the 500N grade was heard to have slipped by $10/ton.

Spot supplies from the U.S. offered into India tend to increase substantially towards the end of the year, but this did not seem to materialize, perhaps because there were fewer extra volumes than anticipated and prices did not meet expectations, although discussions were ongoing. Contract shipments from South Korea continued to move to India largely unabated, but spot offers appeared to have dried up.

National oil company Indian Oil Corp.’s Group II supply was not expected to be affected by Group III expansion work at the Haldia refinery, but could see reduced availability this month as the producer was performing maintenance before the start-up of the expanded facilities near the end of the year. The turnaround on the Group II trains was heard to have started in November, but the producer has built inventories to cover contractual requirements during the outage.

Group III
Group III supplies were ample to meet current demand, which has weakened ahead of the year-end holidays. Economic uncertainties have dampened consumption in downstream applications in many countries as well.

In China, domestic producers continued to offer competitive prices to protect or conquer market share against imports. Even so, there were plenty of imported Group III cargoes moving to China under contract, particularly as certain approvals are linked to specific suppliers.

In India, demand for premium base oils continued to improve as the automotive segment has seen positive growth. However, global availability of certain grades has lengthened, applying pressure on pricing. Group III prices for the 4 cSt and 6 cSt grade were slightly lower, with imported products slipping by close to $5/t on a CFR India basis.

As mentioned previously, new domestic Group III capacity in India was anticipated to displace some import volumes once the plant starts up. National oil company Indian Oil Corp. was expected to complete an expansion of its Group III plant in Haldia in the fourth quarter of 2025. The refinery was heard to have shut down in November for maintenance on the existing Group II trains.

Most Group III prices were reported within the published ranges in Asia, but at least one producer’s prices carried a premium because of its full approvals and ability to offer global supply from multiple production sites. The producer’s lowest prices for all grades were above the high end of the published FOB Asia ranges. The published ranges may be adjusted in the coming weeks pending further market input.

Shipping

Discussions centered on a good number of inquiries, including:

• A 1,100-ton cargo expected to be shipped from Onsan, South Korea, to Bangkok, Thailand, between Dec. 10-20.
• A prompt 7,000-ton parcel was looking at being shipped from Ulsan, South Korea, to Guayaquil, Ecuador.
• A 3,000-ton lot was mentioned for shipment from Rayong, Thailand, to Nantong, China, between Dec. 24-28.
• A 3,500-ton parcel for shipment from Onsan to Huizhou, China, on Dec. 18.
• 10,000 tons-12,000 tons were likely to be shipped from Yeosu, South Korea, to Godau, Vietnam, in 1H Jan.
• 14,000 tons were on the table for shipment from Ruwais, United Arab Emirates (UAE), to West Coast India and East Coast India in mid-Dec.
• 6,000 tons-7,000 tons were anticipated to be shipped from Sriracha and Rayong, Thailand, to West Coast India and the UAE at the end of Dec.
• A 1,000-ton parcel was mentioned for shipment from Onsan to Singapore in late Dec.
• Around 3,000 tons were expected to be lifted in Onsan for Merak, Indonesia, between Dec. 20-30.

Production

The global base oil supply and demand balance has eased as a number of turnarounds have been completed and plants have been restarted, although reduced output at a few units, together with permanent closures over the last few years may continue to crimp supplies in some base oil segments. Turnarounds that took place earlier in the year are still listed below as they may have impacted base oil pricing at the time of completion and beyond.

Group I

• Luberef (Saudi Aramco Base Oil Co.) has scheduled a 45-day turnaround at its plant in Yanbu, Saudi Arabia, from mid-November until December. The unit produces Group I, Group II and Group III base oils. The plant underwent an expansion in 2017. The company had shut down its plants in Yanbu and Jeddah for about a week in Q2 2025.
• Eneos completed maintenance at its Kainan (May–June) and Mizushima B (Feb–May) plants in Japan. Mizushima A underwent maintenance from October to November.
• Two Eneos Group I plants were permanently closed in recent years.
• Group I supply in Japan has been tight after extended shutdowns at Idemitsu’s Chiba unit, which was completed at the end of July/early August, and Cosmo Oil’s Yokkaichi unit.
• Chennai Petroleum completed a turnaround at its Group I plant in Chennai, India, in September/October for approximately one month.
• Thai Lube Base Oil’s Group I unit in Sriracha, Thailand, was shut for 45 days from mid-July to second half August.
• PetroChina’s Dalian refinery began a permanent shutdown in 2023. The base oils unit closed in late 2024, with full closure by July 2025. Inventory clearance was scheduled by end of August.
• CNPC’s Fushun plant in Liaoning is expected to increase Group I production to offset the Dalian closure. Bright stock capacity is estimated at 60,000 t/y.
• IRPC’s Group I plant in Thailand was offline for maintenance in May
• HPCL in India restarted its Group I unit in late April/early May following a partial shutdown.
• Sinopec completed a two-month turnaround at its Gaoqiao Group I and II plant in May.
• CPCL had a one-week maintenance at its Chennai Group I plant in April.
• Pertamina’s Group I plant in Cilacap, Indonesia, underwent maintenance from mid-January to late February/early March.

Group II

• ExxonMobil has completed a capacity expansion at its Singapore Resid Upgrade Project and commenced on-spec production in August. The producer has started to offer an ultra-heavy Group II grade with similar characteristics to bright stock. The project is an upgrade of the company’s integrated manufacturing complex, which will allow it to expand large-scale production of its global EHC™ Group II slate and meet growing demand for high-performance lubricants in the Asia-Pacific region, the company said.
• Indian Oil Corp. was understood to have started a one-month turnaround at its Group II plant in Haldia in early November. The producer was expected to complete an expansion of its Group III capacity in Haldia at the end of the year.
• Bharat Petroleum delayed a brief turnaround to October from earlier in the year, but there was no confirmation whether the plant had been shut down in October.
• Formosa Petrochemical has postponed a scheduled a turnaround and catalyst change at its Mailiao, Taiwan, plant from the fourth quarter of 2025 to 2026.
• Hyundai Oilbank Shell Base Oils plans to shut down its plant in Daesan, South Korea, in April 2026 for approximately 45 days.

The company had cut run rates in March for several weeks due to feedstock limitations, but increased rates in late May.

• BPCL completed maintenance at its Group II plant in Mumbai, India, in March, but there were reports of ongoing reduced output that was expected to last for several more months.
• HPCL reportedly conducted a 45-day turnaround at its Group II trains from May until July, following some delays.
• Excel Paralubes completed a scheduled turnaround at its Lake Charles, Louisiana, U.S. plant in October. The plant had been running at reduced rates for most of the year, limiting spot availabilities in the U.S.
• GS Caltex completed a 45-day turnaround at its Group II/III unit in Yeosu, South Korea, in late February to May, which had limited spot supply.
• An unplanned outage at CNOOC’s Group II unit in Huizhou affected China’s Q2 availability.
• Sinopec’s Gaoqiao plant turnaround ended in May; its Jinan Group II unit was shut for a month in April.
• Chevron restarted its Group II plant in Pascagoula, Mississippi, U.S., after a four-week turnaround in late May.
• Motiva restarted operations in June after a three-week turnaround at its Port Arthur, Texas, U.S., hydrocracker beginning in late May. However, some production issues lingered for several more weeks, reducing the producer’s Group II inventories.

Group III

• A fire at SK-Pertamina’s refinery in Dumai, Indonesia, broke out on October 1 but was quickly extinguished, with no impact to base oil supply reported. The Dumai Group III base oil plant was shut down for maintenance after the fire and has been restarted. Term supplies were not expected to be affected. Pertamina also operates a Group I plant in Cilacap, Indonesia. The Dumai refinery is a joint venture between Indonesian state-run Kilang Pertamina Internasional and South Korean producer SK Enmove.
• Indian Oil Corp. was expected to complete an expansion of its Group III capacity in Haldia at the end of the year. The plant was expected to undergo a one-month turnaround in November.
• SK Enmove completed a partial turnaround at its Ulsan Group III plant in late June; production on other trains continued.
• Adnoc shut its Group II/III plant in Ruwais, UAE, for two or three weeks in early May.
• BAPCO began a turnaround and catalyst change at its Group III plant in Sitra, Bahrain, in May and completed it in late July.
• Hainan Handi had an extended shutdown at its plant in China, starting in mid-June.
• Sinopec restarted its Group III plant in Yanshan in late July.

Prices

Crude

Crude oil futures were largely steady in early trading on Monday as traders monitored India’s buying of Russian crude and Ukrainian attacks on Russian energy infrastructure continued. China’s November imports of crude oil and soy beans rose from the previous month.

• Brent February 2026 futures were trading at $63.87 per barrel on Dec. 8, up from $62.84/bbl for front-month futures on Dec. 1 (ICE Futures Europe).
• Dubai crude futures (Platts) for January 2026 settled at $64.06/bbl on Dec. 5, up from $63.07/bbl for front-month futures on Nov. 28 (CME).

Base Oils

Spot base oil prices in Asia were mixed, with the heavy grades succumbing to downward pressure because of weaker demand against growing supplies, and the light grades seeing moderate increases due to snug supply fundamentals.

The price ranges portrayed below reflect discussions, bids and offers, as well as deals and published prices widely regarded as benchmarks for the region.

Ex-tank Singapore
Group I solvent neutral 150 was steady at $780/t-$820/t, but the SN500 edged down by $10/t to $930/t-$970/t. Bright stock prices were also assessed down by $10/t at $1,330-$1,370/t (all ex-tank Singapore).

Group II 150N was holding at $820/t-$860/t, but the 500N inched down by $10/t to $970/t-$1,010/t.

FOB Asia
Group I SN150 was holding at $690/t-$730/t, but the SN500 dropped by $20/t to $760/t-$800/t. Bright stock prices were also lower by $20/t at $1,150/t-$1,190/t.

Group II 150N was assessed steady at $720/t-$760/t, but the 500N was lower by $20/t at $800/t-$840/t.

The Group III grades edged down, with the 4 cSt and 6 cSt grades slipping by $10/t to $1,080/t-$1,120/t, and $1,050/t-$1,090/t, respectively. The 8 cSt was adjusted down by $20/t to reflect current discussions at $900/t-$940/t (all prices FOB Asia).

Gabriela Wheeler can be reached at gabriela@LubesnGreases.com

Lubes’n’Greases shall not be liable for commercial decisions based on the contents of this report.