Weekly EMEA Base Oil Price Report

Israel has maintained the right to defend itself against attacks from Hezbollah and Iran and will continue to repel any drone or missile strikes from either quarter.

With the end of hostilities not yet in sight, the most affected people are the populations of Middle East Gulf countries where normal commercial activities have largely ceased and economies are teetering on the brink of social and economic disaster.

Base oil supply chains have not just been interrupted, but in some instances have been entirely wiped out. For example, no base oil imports are getting through the Strait of Hormuz which is still under the control of the Islamic Revolutionary Guard Corps, in spite of U.S. claims that some vessels are being escorted through the channel by U.S. warships. This news is being perpetrated by Washington, but without verification od vessel details – names, cargoes or even direction of travel – these claims are being treated as spurious at best.

Meanwhile production of API Group III base oils from Sitra, Bahrain, and Ras Laffan, Qatar, have been halted due damage resulting from Iranian airstrikes soon after fighting began on Feb 28.

Adnoc’s refinery at Al Ruwais, United Arab Emirates, also came under attack but appears to be undamaged. Still, the strait’s closure means the plant has no way of shipping product to its normal markets around the world.

Geopolitical tensions are rife not only in the Middle East but also in Ukraine, which carried out drone strikes against targets deep inside Russia, in the St. Petersburg area, hitting a refinery, storage terminal and naval base during an international trade expo in that city.

Reports of huge rises in prices for Russian domestic base oils and lubricants supports the narrative that the war’s impacts on Russsia are increasing and fanning the conflict’s unpopularity at home.

These regional factors have had enormous effects on international global base oil trading and movement of material. Trade routes have had to be redrawn, and new arbitrage opportunities have opened up, whilst others have closed down due to proximity to fighting. 

Announcements, declarations and bulletins issued from Tehran, Washington, Moscow and Kyiv, have all influenced energy prices across the slate, with crude and product prices reacting with volatility to perception in markets.

Crude and Gas Oil Prices

Crude prices have largely settled below $100 per barrel, levels not seen since mid-May, but with the Middle East region on tenterhooks, reaction and counter reaction could lead to a further escalation in energy prices, pushing petroleum products to new highs.

Forecasters are still hesitant regarding future crude prices. Longer term predictions are generally envisioning lower levels, but these calls are dependent on some form of a deal in the Gulf between Trump and Tehran, where there is no hindrance to the movement of crude and petroleum products from that region.

Many industries are being affected by the uncertainties unleashed by the Iranian war, with chemicals and fertilizers being constrained by the Iranian activity in the region.

Dated deliveries of Brent crude: $94.35/bbl, August front month
West Texas Intermediate: $91.30/bbl, July front month
European low-sulfur gas oil: $1,064/t, June front month

These prices were obtained from London ICE trading late Monday June 8.

Europe

Group I base oil availabilities seem to be a little more relaxed, with imports coming into Europe from Saudi Arabia, and with production from a number of refiners starting to move back to former output levels. Suppliers appear to have availabilities, with reports that certain refiners are taking advantage of higher base oil prices leading to increased margins.

However, there are chinks appearing in the latest prices with many customers complaining bitterly re the current high prices being offered for Group I base stocks. Buyers are citing the fact that base oil numbers climbed to current levels quickly when diesel prices moved above $1,500/t, and that feedstock levels have now abated, and have fallen back to levels closer to $1,000/t.

Negotiations have centered around the percentage declines in fuel prices, and the assertion that similar moves should now be applied to base oil prices. Buyers are countering the ‘base oil lag’ argument by stating that prices rose quickly when crude and feedstock levels spiked, and that the corollary should now apply.

Ultimately, if refiners are returning to normal base oil production, it will have the effect of diluting the market further with more availabilities and prices may start to adjust lower. Some suppliers are sympathetic to the buyers’ argument and are starting to offer total volume allowances or small discounts from offered prices, mainly to appease buyers.

A number of blenders have been indicating lower prices this week, versus numbers offered over the past couple of weeks, and this trend may continue with improving availabilities, and more options to purchase. During last week, for the first time since the Iran war started, no price increases were advised, and it will be interesting to see what occurs during the next few days.

Group I base oil prices still remain high. Should they start to decrease, the discounts will not be large, and it may be a gradual process rather reactive dramatic falls from current levels.

Export sales still remain elusive with almost every available European barrel of Group I base oils being purchased by regional buyers. The Group I market has turned again into import mode with suppliers who have access to surplus material electing to place Group I availabilities into the European arena.

One major continues to send large cargoes to affiliated companies in Singapore and South Africa, and whilst these large cargoes may strictly be exports from Europe, they are a global supply rebalancing.

Prices are taken lower at both ends of the ranges, but with one observation: Oil majors often issue rates akin to “posted prices,” which are used as target levels but can be discounted at the supplier’s discretion.

Group I

European exports, FOB
No current prices

Northwestern Europe, FCA Antwerp-Rotterdam-Amsterdam
SN150: $2,375/t-$2,460/t
SN500: $2,450/t-$2,520/t
Bright stock 150: $2,625/t-$2,750/t

Eastern Europe, basis FCA (rather than previous FOB)
SN150: $2,285/t-$2,355/t
SN500: $2,440/t-$2,530/t
Bright stock 150: $2,625/t-$2,700/t

Mediterranean, FCA Spain, Greece, Italy
SN150: $2,340/t
SN600/500: $2,465/t
Bright stock: No availabilities, but prices may be offered for future

Pan-European, FOB/FCA
SN150: €2,040/t-€2,100/t
SN500/600: €2,185/t-€2,355/t
Bright stock 150: €2,435/t-€2,590/t

Pan-European prices are assessed on an aggregate basis taking prices from Scandinavia, Poland, France, Germany, Benelux, Spain, Italy, Greece, the United Kingdom, and Baltic States.

The euro’s exchange rate with the U.S. dollar was $1.15420 Monday.

European Group II base oil prices remain high, but with no advised increases last week, levels may be stabilizing around current levels. The same buyer complaints are being levelled at suppliers of these grades as in Group l, with buyers quoting feedstock prices which have dipped from the recent highs.

Buyers are claiming that levels should be brought into line with a more acceptable premium to distillate fuels, particularly diesel, which has fallen back over the past couple of weeks.

Prices are taken slightly lower, taking price levels to around $2,965/t for 150 neutral and $3,125/t for 600N, basis FCA sales Antwerp-Rotterdam-Amsterdam.

Availability of Group II base stocks is once again more than adequate, with large imported quantities having arrived into supply hubs from U.S. sources, and with European local production running well, the market looks to e covered for the time being.

Europe will se an increase in the availability of locally produced Group II base oils perhaps later this year, as PK Orlen finalise preparations at Gdansk refinery. The initial nameplate capacity for this facility was to be around 400,000 tons per annum, but initial quantities may be lower, building production levels from start-up.

Supplies of Group II base oils are starting to arrive from Saudi Arabia with cargoes from Yanbu in the Red Sea. With the European market having typically higher prices than alternative markets such as India and South Africa.

Prices are unchanged this week at around €2,425/t-€2,570/t for 100N and 150N and €2,550/t-€2,680/t for 600N, but levels may be open to negotiations over the coming weeks, should feedstock price levels remain around current levels.

Group II, FCA basis
110N: €2,470/t-€2,610/t
150N: €2,475- €2,620/t
220N: €2,445/t-€2,510/t
600N: €2,600/t-€2,720/t

Prices refer to a wide range of Group II base oils that may be sourced from within Europe or imported from the U.S., the Red Sea and Asia-Pacific.

With the Strait of Hormuz remaining effectively closed, there will be no Group III base oils arriving from Middle East Gulf sources. With two of the sources  unavailable due to missile damage, only Adnoc production may still be available at some stage, but getting the material out of Middle East Gulf is a really tough logistical nightmare right now.

Distributors concerned with Middle East Gulf sources have issued ‘Force Majeure’ notices to customers, with sincere apologies for the current situation, which is totally and completely outwith distributors’ control.

A distributor has been investigating the possibility of loading flexies on trucks and moving these to a container port, but trucks are few and very expensive. The operation would be uneconomic to move material to the European market. The alternative could be a new freight train service which runs between Abu Dhabi and Fujairah, the latter being a container port on the Gulf of Oman, outside Hormuz.

European buyers are vainly searching for alternative suppliers of Group III base oils, but established suppliers who will have stocks of Group III have their own portfolio of customers, many of whom have purchased Group III base oils from the same supplier for many years.

Blenders are looking at all options such as using polyalphaolefins to replace Group III and Group III+ base stocks, but surplus PAOs are not available, with only a few European producers such as ExxonMobil, Ineos and Chemtura committed to contracted customers. Prices for PAOs have rocketed, with metallodecene grades, such as PAO 100, topping $5,300/t last week.

Cargoes of Group III with full slates of finished lubricant approvals have loaded out of Cartagena, Spain, with the last vessel due in Antwerp to discharge into hub storage. The facility in Cartagena, having delayed planned maintenance earlier this spring, will close temporarily, possibly in late summer, for the planned work to be completed. It is not known how long production will be out, but this refiner has vast experience and will cover requirements at the time. It was suggested today that the turnaround could take around 20 days.

Prices for Group III oils with partial slates of finished lube approvals are unchanged from last week, but the shortages that seem imminent would create additional upward pressure.

A large user of gas-to-liquids Group III+ base oils has lost the supply from the Qatar facility, and is taking quantities of rerefined Group III grades from a producer in Germany. This company will be able to access the new Shell Group III plant in Wesseling, but that facility will not start production until 2028, and it will not employ GTL technology. 

Group III

Partly approved, FCA Antwerp-Rotterdam-Amsterdam
4 cSt: €3,350/t-€3,400pmt
6 cSt: €3,345/t-€3,395/t
8 cSt: €3,150/t-€3,250/t

Fully approved, FCA Antwerp-Rotterdam-Amsterdam, Spain
4 cSt: €3,375/t-€3,425/t
6 cSt: €3,365/t-€3,420/t
8 cSt: €3,400/t-€3,450/t

All the above products sold on a delivered basis will be subject to transportation charges, added to the prices above.

Rerefined Group III, FCA Germany
4 cSt:  €3,050/t
5 cSt:  €3,040/t
6 cSt:  €3,040/t

Baltic Sea

Domestic prices for Russian base oils reportedly rose during May to all time highs, and whilst this may correct, the beginning prices were probably incredibly low. Beyond a doubt, Russian base oil prices will have escalated, but there are other questions as whether blenders in Russia will be able to afford to purchase base oils, and the other question remains as whether additives produced within Russia will be available in sufficient quantities to be able to blend required finished lubricants.

There are no reports of Russian bulk base oil cargoes loading or leaving Baltic ports, and with Ukrainian strikes on facilities at St Petersburg terminal there may be damaged lines.

Rumors heard around the market were also suggesting that trains taking base oils from refineries to shore terminals were being delayed and were slow to discharge due to precautions against Ukrainian drone attacks.

Black Sea & Turkey

The Turkish lubricant markets are in difficulty, with Turkish buyers unable to purchase sufficient quantities of lower-priced Group I base oils. Receivers are looking to Luberef in Saudi Arabia, for any availability from Yanbu or Jeddah. The problem will be that any availabilities from this source will to be low priced, and may be unaffordable for Turkish buyers.

Supplies from Iran have been stopped due to the war, and no Russian base oils are available for import into Turkish buyers.

One trader has been selling “Egyptian” cert of origin material from El Dhekeila, which is suspected to be be Russian origin. These Group I base oils have been sold into EU and U.K., and are now being resold in those markets. With the certificate of origin clearly showing “Egyptian” no sanctions are being contravened, but if the product was tested by say, VLS in the U.K., then it could be proved beyond doubt that the material is of Russian origin.

Some blenders in Turkey are looking at Azeri and Uzbek sources, but logistics are difficult and expensive, and the full range of Group I grades is not available, with heavier solvent neutrals missing from the Uzbek slate.

Turkish blenders continue to purchase Group I base oils from AMOC and APC in Alexandria, perhaps they can combine with a parcel from El Dhekeila! Turkish buyers have been encouraged to share bright stock cargoes with EGPC supplied material from Yanbu, but it is considered that EGPC would be reticent and unwilling to share cargoes and vessels with third parties.

Tupras this week reduced its domestic for all grades produced at its refinery in Izmir.

Group I, ex rack Izmir
Spindle oil: Tl 77,857.00/t plus, VAT Tl 18,511.30/t
SN150: Tl 76,676.00/t plus, VAT Tl 17,364.50/t
SN500: Tl 78,411.00/t plus, VAT Tl 17,711.50/t
Bright stock: Tl 94,765.00/t, plus VAT Tl 20,982.30/t

Sales incur a standard loading charge of Tl 10,146.50/t and should be added to the prices above.

It is interesting to see Tupras dropping prices, perhaps in deference to buyers who cannot pay the higher numbers ????

Traders in Turkey have advised no sale offers will be forthcoming for Group II. Traders are using this material in tank to blend, and will sell the resultant finished lubricants at current high prices, with revenue generated being required to finance replenishment barrels to continue blending finished lubes selling in the Turkish market. Finshed Lubes are also  being exported to markets such as Ukraine, Greece. and North Africa.

Group III

Partly approved
Tatneft 4 cSt, FCA: no avails

Fully approved
From Cartagena, Spain, CIF Gemlik: €3,450/t-€3,520/t

Middle East

Cargoes loaded from Yanbu during May will be arriving in Antwerp-Rotterdam-Amsterdam, on a prompt basis, with one cargo loaded around mid May and another two parcels loaded at the end of May. These parcels are expected to start discharging during the next week.

An exceptionally large cargo has loaded for Fujairah and following part-cargo discharge, the vessel will sail onward to discharge the remaining cargo in Mumbai anchorage. The cargo size was unconfirmed by reports are that the vessel chartered would carry around 30,000 tons in total. Usual quantities moving into Fujairah are around 10,000 tons. This report will check with local ship’s agents in Fujairah for available draft at the base oil discharge berths.

The new rail freight service which running ten trains per day between Fujairah, Dubai and Abu Dhabi is possibility for the Adnoc distributor in Europe, but the logistical problems may be insurmountable with a lack of containers, meeting shipping dates on containers vessels bound for Antwerp-Rotterdam-Amsterdam, and the cost of the operation.

The problem is also exacerbated by the assumption that prices in the European Group III market will continue at the recent high levels. The time to ship a quantity in containers is also against this project, but……

The two vessel owners/operators approached during the previous week regarding vessels at anchorage for a number of weeks. Confirmed that they would ride out the delays with the vessel owners considering at the time that the Hormuz closure would be short lived, and that free passage would be available within a week or two following the U.S. attacks on Iran.

Fifteen weeks later, it has proved to be an expensive mistake having a loaded vessel at anchorage for that length of time. This report was told that crew rotation, stores and bunkers required for safety and to maintain air conditioning on board are regularly being provided by ships’ agents based in Fujairah. However, the costs are rising every day, and although one vessel has looked at moving to an Indian port, this has not been successful due t many reasons, one of which was the negotiation for the transfer of the base oil cargo on board. The cargo consists of two grades of Group II base oils, but the owners of the cargo are looking for current prices for receivers to purchase, but the Indian buyers insisted that the cargo be sold at pre-war price levels. No deal was possible.

Companies without cash flow are appealing to government and the banks to allow extended facilities to be able to await the arrival and discharge of cargoes waiting for Hormuz to re-open.

Base oil prices in United Arab Emirates spiked during the early days of the war, but with no product left in storage, there are no reported FCA sales or prices.

Supplies of Group II in storage are depleted and prices have been suspended until new cargoes can be discharged. Small quantities are arriving by truck and rail from Fujairah, but are not being resold, and are being used in blending to produce lubricants for the local markets, including government contracts for military.

Group III base oils, FCA Hamriyah/Sharjah port, or delivered by RTW in U.A.E. and Oman, are apparently available from Adnoc at Al Ruwais. Quantities are not large, but the difficulties have been in finding other base oils to blend with Group III, and also blenders laying hands on additives.

Thus demand is slow and prices are yet to be confirmed.

The distributor in U.A.E. had temporarily closed shop, and has recently re-opened operations, but sales are slow due to the above, and will only resume to normal following the re-opening of Hormuz, when other base oils and additives can be made available to blending operations.

Prices are suspended for the moment. Netbacks for Group III base oils ex Al Ruwais, Sitra and Ras Laffan are also suspended.

Africa

A further Group I cargo of some 6,000 tons in total has sailed from a USG port and is bound for Mohammedia in Casablanca, Morocco. This is the second such cargo which has been arranged possible be a U.S. trader, but this is not yet confirmed.

The cargo should arrive during second half of June.

The large cargo of Group II base oils that recently loaded out of U.S. Gulf Coast for receivers in Durban has arrived. The vessel will discharge part-cargo in that port, before proceeding to the west coast of India to discharge the balance of the parcel. The cargo is for a major supplier for Group II base oils, with the vessel loading the cargo from Pascagoula.

A further large composite base oil cargo has loaded out of Rotterdam and Fawley for a major, supplying distributors and affiliated companies in South Africa. The vessel will discharge in Durban during second half July.

There is very little new reporting to be gleaned from the West African market.

The supply to Ghana, Guinea and Cote d’Ivoire is proceeding, but no new activity has been reported from Nigeria. This cargo has been mis-reported again, with another base oil publication stating that the cargo was going into Nigeria. This is categorically not the case, with the vessel calling at three ports under the contracted supply of Group I base stocks.

The ports are Tema in Ghana, Abidjan in Cote d’Ivoire and Conakry in Giinea.

No further cargoes will be supplied into Nigeria for some time, with receivers facing purchasing base oils at three times the prices paid for the last to cargoes to arrive. This is not going to happen. One reason for no further cargoes going into Nigeria is that buyers are not prepared or ready to accept high prices which would now have to be paid for future cargoes.

Trading in Nigeria has become more and more risky, and would now involve large financial exposure to unsecured debt.

Also there are no avails of large parcels of Group I available either in Europe or from U.S. Hence there are many good reasons to be avoiding doing business in Nigeria right now

Dollar exposure, the constant risk of buyers back trading. Demurrage going unpaid payments, the list of reasons not to trade in Nigeria is endless.

This report heard third hand, that if no base oil cargoes arrive into Apapa, then the Nigerian Government/NNPC may get involved. No further details have been heard or disclosed.

For those sellers still collecting funds from their last cargoes, the Nigerian naira exchange rate is NGN 1,360 to the dollar, as of 8th June 2026.

No new offers have been made or will be made.

Cargoes which arrived into Apapa, were sold at prices valid prior to the Iranian war. Levels were around the following numbers.

Group I
SN150: $885/t
SN500: $925/t
SN900: $1,035/t

Ray Masson is director of Pumacrown Ltd., a trader and broker of petroleum products in London, U.K. Contact him directly at pumacrown@email.com.

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

Historic and current base oil pricing data are available for purchase in Excel format.