Weekly Asia Base Oil Price Report

Ongoing trade turmoil amid recent United States tariffs impacted the economic wellbeing of many Asian nations, while others seemed to have navigated the storm more nimbly. China was one of the countries that had been a particular target of the steep tariffs imposed by U.S. president Donald Trump, yet the country was able to achieve a trade surplus because of increasing exports to other nations. China’s customs data showed that the country’s trade surplus for the first 11 months of 2025 surpassed the $1 trillion mark, at nearly $1.08 trillion, overtaking the $992 billion surplus registered in 2024, CNN reported. While exports from China to the U.S. have fallen for most of the year, shipments have surged to other destinations, including Southeast Asia, Africa, Latin America, Africa and the European Union.

Group I
Pressure has built on Group I base oils as supplies have started to mount, with prices for most grades edging down this week. The heavy grades underwent the largest adjustments as these cuts were more readily available.

There continued to be availability from traditional sources in Southeast Asia, with some cargoes also surfacing from Japan. However, most of these offers were met with lukewarm buying interest as buyers were not in a rush to secure additional cargoes at the end of the year.

A Thai producer maintained its prices for small cargoes of Group I SN500 and bright stock from the previous week, with the SN500 heard at $950 per metric ton FCA Thailand and bright stock at $1,330/t FCA Thailand for January shipment.

An Indonesian refiner awarded a tender on December 4 and was able to offer additional small cargoes this week.

A Japanese supplier was heard to have offered a Group I bright stock cargo, although the seller does not typically offer base oils for spot business as it consumes most of its base stocks in downstream operations and often procures additional spot cargoes.

Buying interest for Group I cargoes from the Middle East remained healthy and a couple of Asian shipments were heard to be heading to that region, with the uptick in demand partly attributed to a plant turnaround taking place at a base oils unit in Saudi Arabia. The producer was anticipated to restart the plant before the end of the month and increased spot supplies should become available in January 2026.

In China, domestic suppliers have adjusted Group I ex-tank prices up as there has been an uptick in demand for locally produced base oils versus imports. Distributors of imported material have therefore adjusted prices down in hopes of attracting buyers, particularly for bright stock cargoes.

In India, domestic prices edged down week-on-week on weakening demand, despite tightening import supplies from the Middle East as a key supplier was conducting a turnaround. This was likely because buyers were aware of the turnaround and had padded inventories ahead of the outage, reducing their need for additional cargoes. Imported SN500 and bright stock prices slipped by about $5/t on a CFR India basis, while prices for the SN150 were steady given leaner availability.

In related market news, Luberef (Saudi Aramco Base Oil Company) announced that it had received a notice from Saudi Arabian Oil Co. (Saudi Aramco) regarding a new feedstock supply agreement for the company’s Jeddah facility. The facility had been expected to close by mid-2026, but the new supply agreement will allow it to continue operations beyond 2026. As a result, the company will maintain its current production capacity of 275,000 metric tons per year of Group I base oils. With the completion of the Growth-II Project in Yanbu, Luberef’s total production capacity will reach 1.53 million metric tons per year, making it the only supplier in the region able to offer Group I, Group II, and Group III base oils.

Group II
The recent price slide seems to have slowed down in the Group II segment, with supply and demand attaining slightly more balanced conditions, particularly for the 150N cut. There continued to be opposing price trends affecting the light grades versus the heavier cuts as the latter were more plentiful and demand tends to slow down in the winter. Buying interest remained generally lackluster, not only in Asia, but in other regions as well, freeing up additional supplies and making it more difficult for suppliers to find alternative outlets for their surplus cargoes.

Offers for the heavy grade from a South Korean supplier edged down as the seller hoped to attract business and was still requiring buyers to lift the light grades in conjunction with the heavy cut. A second South Korean producer was heard to have bulk availability of light grades, but only small quantities of 500N to offer.

In China, fairly high production rates and weak demand resulted in growing inventories, prompting domestic producers to adjust prices down for the high viscosity grades. The price of imported high-viscosity grade also slipped. Activity was not expected to pick up until before the Lunar New Year holidays in mid-February, as buyers begin building inventories ahead of the busier spring lubricant production season.

In India, a similar situation to that observed in the Group I segment applied to Group II grades, in that plentiful supplies of the heavy grades exerted downward pressure on pricing. Import prices for the 500N grade were heard to have slipped by approximately $10/ton, whereas import prices for the Group II 70N grade inched up by about $5/t, both on a CFR India basis. The 150N was reported as largely steady, supported by an uptick in buying interest for the light grades.

Spot supplies from the U.S. offered into India tend to rise substantially towards the end of the year, but this did not seem to materialize this year. The current situation was likely caused by increased buying interest for U.S. cargoes from closer destinations such as Latin America, and from Europe and Africa as well. With Asian prices moving down, it was difficult for U.S. suppliers to compete in the Indian market.

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 as the producer performed maintenance before the start-up of the expanded facilities. 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
The supply and demand balance of Group III base oils appeared to reach a more balanced state. It was not clear whether this was because plants have reduced operating rates, or whether there has been a sudden uptick in demand in some countries. Prices have stabilized as a result, although values for the 8 cSt cut were still exposed to downward pressure due to more plentiful availability of this grade.

In China, domestic producers have been able to conquer market share thanks to competitive pricing against imports. Additional domestic Group III capacity was also anticipated to come on-stream soon. However, a number of Asian suppliers have managed to maintain a steady customer base in China, with cargoes moving there on a regular basis, and some accounts linked to approvals made by a particular producer.

In India, national oil company Indian Oil Corp. (IOC) has completed an expansion of its Group III plant in Haldia. The refinery was heard to have shut down in November for maintenance on the existing Group II trains. Plentiful offers of Group III imports and prospects of increased domestic supplies were placing pressure on prices, although it could not be ascertained whether the IOC product has attained the desired specifications as the refiner has not started commercial sales, according to sources.

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

• A 3,600-metric ton cargo was discussed for shipment from Qatar to West Coast India between January 18-20.
• A second cargo of 6,300 tons was also mentioned to cover the same route, with the lifting expected between Jan. 21-22.
• 10,000 tons-12,000 tons were likely to be shipped from Yeosu, South Korea, to Godau, Vietnam, in 1H Jan.
• A 4,500-ton lot was likely to be shipped from Mailiao, Taiwan, to Karachi, Pakistan, in early Jan.
• A 1,100-ton cargo was expected to have been shipped from Onsan, South Korea, to Bangkok, Thailand, between Dec. 10-20.
• 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.
• 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.
• Idemitsu’s Chiba unit completed a turnaround at the end of July/early August
• 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 completed a one-month turnaround at its Group II plant in Haldia in November. The producer also completed an expansion of its Group III capacity in Haldia in December.
• 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 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

• Indian Oil Corp. has completed an expansion of its Group III capacity in Haldia and a start-up of the expanded plant has been achieved this month.
• 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.
• 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 inched higher on Monday in thin trading ahead of the year-end holidays. Prices bounced up from their lowest levels in almost two months on better-than-expected demand from China in November. However, other monthly data showed weakness in the country’s broader economy.

• Brent February 2026 futures were trading at $61.43 per barrel on Dec. 15, down from $63.87/bbl for front-month futures on Dec. 8 (ICE Futures Europe).
• Dubai crude futures (Platts) for January 2026 settled at $60.83/bbl on Dec. 12, down from $64.06/bbl for front-month futures on Dec. 5 (CME).

Base Oils
Spot base oil prices in Asia were mixed, with the heavy grades again slipping due to weaker demand and growing supplies, and some of the light grades maintaining a steady course due to tighter 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 steady at $780/t-$820/t
SN500 held at $930/t-$970/t
Bright stock down by $20/t at $1,310-$1,350/t

Group II 150N held at $820/t-$860/t
500N slipped by $10/t to $960/t-$1,000/t

FOB Asia
Group I SN150 down by $10/t at $680/t-$720/t
SN500 dropped by $20/t to $740/t-$780/t
Bright stock lower by $20/t at $1,130/t-$1,170/t

Group II 150N assessed steady at $720/t-$760/t
500N moved down by $20/t to $780/t-$820/t

Group III grades stabilized this week
4 cSt assessed at $1,080/t-$1,120/t
6 cSt assessed at $1,050/t-$1,090/t
8 cSt hovered at $900/t-$940/t

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.