Weekly Asia Base Oil Price Report

Crude oil futures fell in early trading on Monday amid renewed hopes of a diplomatic resolution of the Middle East conflict and avoidance of further military escalation. Brent crude ended October at its highest level in six months slightly above $117 per barrel, buoyed by fears that the Iran war could flare up again after the U.S. elections. However, an apparent pause in hostilities over the weekend eased some of these concerns, with futures falling to around $108/bbl on Monday. OPEC+ oil-producing countries kept December production targets ‌steady following a meeting on Sunday, which did not come as a surprise because there were expectations that no fresh adjustments would be implemented until next year.

Base oil values mostly trended up over the week because of firm crude oil and feedstock prices, limited spot availability, and refinery economics, which favored fuel output. Producers responded to the need to keep base oils margins attractive against those of fuels like diesel, which have skyrocketed in recent weeks and continued to hover at historic levels. API Group III base oils remained exposed to upward pressure because of ongoing supply shortages and uncertainties as to when production and shipments out of the Persian Gulf would recover.

Group I

Group I base oil spot prices inched up during the week, with several buyers looking for spot supplies and meeting with few offers as producers still worried about crude oil supply disruptions, soaring feedstock prices and potential run rate cuts. Some suppliers suspended spot business to ensure that they would have enough stocks to meet contractual obligations. These fears would likely not be completely assuaged until normal tanker crossings of the Strait of Hormuz and the Bab al-Mandab Strait can be reestablished, and Iranian and Houthi rebel attacks on refineries, ports and vessels have ceased.

At the same time, numerous consumers appeared to cover demand by using up existing stocks and receiving volumes agreed under contract. Uncertainties in downstream lubricant markets as many countries’ economies have weakened, coupled with a seasonal slowdown as both suppliers and buyers prefer to end the year with lean inventories resulted in reduced base oil consumption as well.

Some participants worried that base oil values would change once supply disruptions are resolved, and they preferred not to be caught holding pricey stocks.

Once again, no fresh spot offers emerged from Thailand and Indonesia during the week, with producers understood to be prioritizing domestic and contract requirements. The Indonesian supplier was not expected to offer any spot cargoes through the end of the year, but this could change, depending on the crude oil and base oil supply situation, sources said.

The reduced number of spot offers in Asia and the ongoing difficulties in securing Group I and Group II cargoes from Saudi Arabia—which were facing loading disruptions and rerouting around South Africa as Houthi rebels attacked vessels in the Bab al-Mandab Strait, kept upward pressure on Group I import prices in India. Offers from Asian producers had been quickly accepted by buyers in other countries because of the ongoing tightness, which reduced the volumes that were available for the Indian market.

Imported Group I SN150 and SN500 cuts were heard to have inched up by $5-10 per metric ton week on week, while bright stock prices were stable, all on a CFR India basis. But the logistics involved in acquiring imports and price uncertainty as cargoes may lose value by the time they land drove Indian buyers to look for domestic products. Group I shipments from Russia, which were previously available to Indian buyers at competitive levels, have also dried up because of shutdowns of Russian refinery operations. A similar situation applied to imports from Iran, which remained largely unobtainable.

Firm crude oil and feedstock prices also kept pressure on base oil prices in China. This coincided with a spurt of buying activity as some buyers have started to build inventories ahead of year-end and the Lunar New Year in early February 2027. Expectations of tight domestic supplies drove some buyers to seek imports, but fresh spot offers from origins such as Thailand were not available. Distributors who kept limited import volumes in stock have increased their offer levels. Bright stock demand was expected to remain lackluster as consumption of the heavy-viscosity grade tends to decline during the colder winter months when consumers prefer lighter formulations.

Group I prices for domestic base oils were also firm in China, receiving support from vacuum gasoil values and more limited availability. Chinese refiners were also facing pressure to produce more fuels as China has resumed exports of clean fuels such as gasoline, diesel, and jet fuel after a brief one-week suspension at the start of October 2026, according to Reuters, and this may restrict base oil production rates.

Group II

Group II spot prices were largely stable on account of tight availability and few fresh spot offers. Some producers have temporarily retreated from the spot market because of crude oil supply concerns linked to the Middle East disruptions. While some Asian refiners are able to use crude from origins other than the Middle East, this may affect their yields. The more limited spot offers also coincided with weaker buying interest as blenders faced difficulties recovering the climbing production costs from downstream segments due to consumer resistance to steeper pricing, amid worries about holding high inventories at the end of the year.

The sole Taiwanese Group II producer has shut down its Group II plant in Mailiao for maintenance. The turnaround started in mid-October and the producer was not expected to offer spot cargoes until after the plant’s restart, depending on the successful completion of the maintenance program and domestic consumption levels at that time. Formosa announced a November domestic price increase for base oils; its Group II 70N and 150N will increase by New Taiwan Dollars (NTD) 0.89 per liter and its 500N will rise by NTD 2.50/l. (NTD 33 = US$1). Shipments under contract were expected to continue throughout the month, with a large cargo having been lifted in Taiwan bound for India for mid-November arrival.

Indian buyers have been seeking base oil cargoes from several different sources as shipments from Saudi Arabia have declined. There were expectations that cargoes would be arriving from Singapore, Taiwan and South Korea in the coming weeks, and that a large cargo had also loaded in the U.S. and was on its way to India. Volumes shipped from the U.S. were expected to be lower than in the previous years because the domestc market in the U.S. had been very tight during the year, but a few discussions were heard to be ongoing. U.S. suppliers have also started to release the extra inventories held during the hurricane season, which has largely come to an end without bringing too many weather-related disruptions.

Import prices in India were generally stable this week, supported by limited regional availability and healthy buying interest. It was also a week for reassessing immediate product needs and monitoring developments in the U.S. elections, which could bring about trade changes in the coming months.

Given uncertainties related to imports, many buyers in India preferred to purchase cargoes from domestic producers. The start-up of a new domestic Group II plant in India this month was also expected to bring more volumes into the market. However, heavy-viscosity supplies have tightened and prices were exposed to upward pressure, and a second Group II unit was anticipated to undergo a turnaround before the end of the year, which could tighten supplies.

Buying interest for domestic products was similarly strong in China, as buyers turned their attention to local offers of Group II cuts, particularly given reduced regional spot volumes.

Restrictions on crude supplies from the Middle East supported domestic Group II prices. China is the world’s largest crude oil importer and almost half of its crude imports originate in the Middle East. The ongoing sanctions and blockades affecting Middle East shipments have forced Chinese refiners to tap into the country’s strategic reserves and to increase oil imports from alternative sources in South America and Russia. At the same time, the Chinese government has also lifted restrictions on exports of clean products and this has caused a tightening of vacuum gasoil feedstock for domestic production of base oils.

Distributors also had low stocks of imported Group II base oils as there had been a limited number of regional offers in recent weeks.

This situation coincided with a drop in buying interest for Group II base oils as blenders have faced difficulties in recouping steep production costs from downstream markets. The demand slowdown was exerting downward pressure on domestic Chinese Group II prices despite the supply limitations and steep production costs.

Group III

There were few changes to the extremely tight situation affecting Group III base oils, which kept upward pressure on prices. While Group III production at Asian plants was reported as stable, run rates and shipments out of the Persian Gulf remained severely restricted. A couple of Group III cargoes were recently loaded in the Middle East and have made their way to the U.S., and suppliers were heard to be working on additional shipments. However, when and whether these loadings could be achieved remained a question mark, as transit through the Strait of Hormuz was still blocked and presented serious risks.

Demand for imports in some markets such as China was somewhat weaker given the increase in local Group III production. A Chinese producer was heard to have started up a new Group III unit, although commercial volumes were still limited. A second Chinese producer was heard to have offered Group III 4 cSt bulk cargoes for export—an indication that domestic demand was not absorbing all of its production, and that prices in other markets were more attractive. Another domestic producer was understood to have raised its Group III base oil prices due to the tight global availability.

In India, Group III base oil values were reported as stable-to-firm on a CFR India basis because of ongoing tight conditions on a global scale and limited regional supplies. The higher prices received support from increased domestic prices as well. Imported Group III 4 cSt and 6 cSt prices inched up by $10-20/ton, while the 8 cSt, which engendered less demand, remained steady from a week ago. Buying appetite from the engine oil sector has been healthy in India because of strong automotive sales and an uptick in transportation and travel activity following the monsoon season.

As has been the case in recent months, demand for domestic products also remained strong as buyers preferred to avoid logistical and transportation risks and long lead times associated with imports.

The Malaysian Group III producer was heard to have completed a 45-day turnaround at its plant in Malacca in October. No confirmation could be obtained from the producer directly.

In other regions, the joint venture production site operated by Repsol/SK Enmove in Spain has shut down 4 cSt production and supplies were not expected to recover until November, although the 6 cSt and 8 cSt cuts seemed more plentiful, not only in Spain, but in other regions as well.

Demand for rerefined Group III base oils has grown globally as an alternative to virgin base oils, and several new projects were being considered so as to reduce dependence on Middle East Group III supplies, industry experts said.

Shipping

Several base oil cargoes were on the table for shipment this month and the next:

• Approximately 18,000 tons were discussed for prompt shipment from Fujairah, United Arab Emirates, to the U.S. Gulf and/or Rotterdam.
• About 10,000 tons were also quoted for prompt shipment from Ruwais, Abu Dhabi, UAE, to West Coast India.
• A 4,000-ton cargo was mentioned for prompt shipment from Onsan, South Korea, to Yanbu, Saudi Arabia.
• A 2,000-ton cargo was also under discussion for prompt shipment from Nantong, China, to Port Klang, Malaysia.
• An 18,000-ton lot was also discussed for shipment from Yeosu, South Korea, to West Coast India between Nov. 15-30.
• A 2,000-ton parcel was on the table for shipment from Sriracha, Thailand, to West Coast India between Nov. 20-30.
• About 850 tons were expected to be shipped from Onsan to Vietnam in mid-Nov.
• A 2,000-ton cargo was also mentioned for shipment from Sriracha to Singapore in late Nov.
• About 2,000 tons were mentioned for possible shipment from Onsan to Taiwan in the second half of Nov.
• A 2,300-ton parcel was discussed for lifting in Onsan to China between Nov. 8-12.
• A 3,000-ton lot was being considered for shipment from Onsan to Savannah, U.S., in the second half of Nov.
• A 1,700-ton cargo was discussed for shipment from Yeosu to Rugao, China, between Dec. 1-10

Production

Persian Gulf plants updates

Qatar Energy halted production of liquid natural gas (LNG) and other products following drone attacks on its facilities in Ras Laffan and Mesaieed in early March. The facility will not be able to return to normal production for several months, and has declared force majeure on LNG shipments, according to the company’s website. One train at the Shell/Qatar Petroleum Pearl gas-to-liquids base oil unit in Ras Laffan, which suffered some damage during an attack as well, was heard to be shut down. The unit utilizes natural gas from the Qatar Energy refinery to produce Group III base oils. The plant has a nameplate capacity of 1,372,000 metric tons of Group II/Group III base stocks. The damaged train was expected to remain shut down for several months, although the company said that repairs were likely to be completed in early 2027.

Fire erupted at Bapco’s refinery in Maameer, Sitra, Bahrain, on March 5 following an Iranian attack, and the fire had been brought under control fairly quickly. Bapco operates a 400,000-metric tons per year Group III base oil facility at that location, within the Bapco refinery complex. The company declared force majeure across all group operations after the Sitra Refinery complex sustained damage. The event severely impacted regional output and forced a temporary suspension of contractual obligations for various products, including Group III base oils. According to the company’s website, during a Board of Directors meeting for the third quarter of 2026, Chairman His Highness Shaikh Nasser bin Hamad Al Khalifa formally reviewed the normalization of operations and the progress of the company’s business recovery. While Bapco has successfully prioritized and secured all local domestic supply needs throughout the crisis, bringing complex refining assets like the Group III base oil units back to reliable, pre-incident operating rates has been a progressive process integrated into their broader post-conflict recovery pipeline, the company explained. Market sources had mentioned that a cargo had loaded at the Bapco terminal in October, but further details remained elusive.

In Abu Dhabi, United Arab Emirates, a suspected drone strike had triggered a fire at the Ruwais Industrial Complex, leading authorities to shut down the country’s flagship refinery as a precautionary measure on March 10. The Ruwais complex houses ADNOC’s Group II and Group III base oils plant. According to sources familiar with ADNOC’s operations, the base oil unit was not damaged during the drone attack as only one train of the refinery had been affected by the strike, although it was reportedly running at reduced rates. The producer appeared to have been able to maintain base oils output for its own downstream lubricant operations. The latest information indicates that ADNOC was preparing to ramp up production following news of a ceasefire in the Middle East in late June, although these plans have been derailed by a resumption in hostilities and renewed closing of the Strait of Hormuz on July 8. The distributor of ADNOC material in the U.S. was compelled to declare force majeure on contract shipments and is maintaining the declaration despite the fact that one base oils shipment was lifted in Abu Dhabi in late September and was expected to have arrived in the U.S. in the last week of October.

The latest plant turnaround information for 2026 is provided below, along with plant shutdowns that took place in the second half of 2025 as they may have impacted base oil pricing at the time of completion and beyond.

Group I

• Luberef postponed a 30-day turnaround at its Group I/Group II plant in Yanbu, Saudi Arabia, from August to October 2026. The shutdown will only affect Group II production, according to sources. A partial shutdown had already started, according to market sources. The company had previously completed maintenance at the unit from mid-November until December 2025.
• Luberef has secured 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 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 tons per year, making it the only supplier in the region able to offer Group I, Group II, and Group III base oils.
• PetroChina Karamay started a turnaround at its Group I and naphthenic base oils plant in Xinjiang, China, in August that was completed in late September.
• CNOOC Taizhou started a turnaround at its Group I/II plant in Jiangsu, China, in mid-April that was expected to have been completed in mid-June.
• Petrochina Fushun completed a turnaround in May at its Group I plant in Fushun, China.
• Idemitsu started a scheduled turnaround at its Group I plant in Chiba, Japan, in mid-May that lasted until July. The company secures Group III base oils required for its high-performance and eco-friendly engine lubricants through a partnership and a memorandum of understanding (MOU) with Saudi Aramco Base Oil Company (Luberef).
• Eneos’ plant in Kainan, Japan, suffered an unplanned shutdown in February 2026. The company’s Mizushima A plant underwent maintenance from October to November 2025.
• Two Eneos Group I plants were permanently closed in Japan in recent years.
• Pertamina reportedly completed a one-month turnaround at its Group I plant in Cilacap, Indonesia, in April 2026.
• CNPC’s Fushun plant in Liaoning was expected to increase Group I production to offset the closure of a plant in Dalian. Bright stock capacity is estimated at 60,000 t/y.

Group II

• Formosa postponed a scheduled turnaround and catalyst change from the fourth quarter of 2025 to mid-October 2026. The shutdown was expected to last until early December. The producer had unexpectedly shut down its Group II base oils plant in Mailiao, Taiwan, in early July due to feedstock supply issues given technical problems at the affiliated refinery, but restarted production the second week of July.
• Petronas was heard to have postponed a turnaround at its Group II/III Melaka plant in Malaysia from June to the second half of August 2026, with the turnaround reported to have been completed in early October.
• State-owned Sinopec Jingmen Co. plans to have a turnaround at its plant in Jingmen City, China, starting in mid-November 2026 until mid-January 2027. It is the largest production plant for base oils and waxes in Central-South China.
• Hyundai Oilbank Shell Base Oils shut down its plant in Daesan, South Korea, in early April 2026 for approximately 45 days. The plant had run at reduced rates for several days in February due to a technical problem. The turnaround was completed around May 8 and spot shipments were expected to have resumed in June.
• GS Caltex shut down its Group II/Group III plant in Yeosu, South Korea, in early May to complete a month-long turnaround. The plant was restarted in June.
• CNOOC scheduled a turnaround at its Taizhou, China, plant in the second quarter of 2026.
• ExxonMobil completed a capacity expansion at its Singapore Resid Upgrade Project and commenced on-spec production in August 2025. 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 2025. The producer also completed an expansion of its Group III capacity in Haldia in December 2025, and was expected to complete a Group II/Group III expansion at Gujarat in the third quarter of 2026.

Group III

• In China, Sinopec Yanshan Petrochemical, a subsidiary of China’s Sinopec Group, was reported to have increased its Group III base oil output in September 2026.
• Hebei Feitian Petrochemical was heard to be running production of Group III base oils in China at high rates in Xinji Economic Development Zone, Hebei. The company specializes heavily in highly refined materials, including coal-to-liquids (CTL) base oils, white oils, and specialty materials, according to its website.
• Also in China, Shanxi Lu’an started a partial turnaround at its plant in Changzhi in early September and restarted operations at the end of the month.
• Hongrun Petrochemical started a shutdown at its plant in Weifang, China, in early July and completed it in late September.
• Petronas was heard to have completed a turnaround at its Group II/III Melaka plant in Malaysia in early October. The program was postponed from June to the second half of August 2026.
• SK-Pertamina (Patra SK) completed a 40-day turnaround at its plant in Dumai, Indonesia, from early May to mid-June 2026.
• Indian Oil Corp. completed an expansion of its Group III capacity in Haldia and a start-up of the expanded plant was achieved in December 2025.
• The restart of Shanxi Lu’an’s base oil plant following an unplanned shutdown in December 2025 was expected to bring more Group III supplies to the market in early 2026.

Prices

Crude Oil

Crude oil futures fell by about 3% on Monday, November 2, as diplomatic talks between the U.S. and Iran eased supply concerns. However, analysts said that underlying supply risks persisted due to ongoing tanker incidents in the Strait of Hormuz and the upcoming U.S. midterm elections.

• Brent January 2027 futures were trading at $108.62 per barrel on November 2, down from $115.86/bbl for front-month futures on Oct. 26 (ICE Futures Europe).
• Dubai crude futures (Platts) for November 2026 settled at $115.67/bbl on Oct. 30, slightly down from $115.73/bbl for front-month futures on Oct. 23 (CME).

Base Oils

Spot base oil prices were steady-to-firm, with Group I and Group II receiving support from firm crude oil prices and a limited number of spot offers. Group III prices were still exposed to upward pressure amid persistently tight fundamentals and regional shortages. Prices have been notionally adjusted to reflect current market conditions and sentiment, but trading continued to be limited and transactions remained difficult to track, especially for Group III grades, as there were hardly any spot volumes to be obtained.

The price assessments 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 inched up by $10/t to $1,520/t-$1,560/t

SN500 also moved up by $10/t to $1,560/t-$1,600/t

Bright stock was firmer by $30/t at $1,770-$1,810/t.

Group II 150N was adjusted up by $10/t to $1,690/t-$1,730/t

500N edged up by $10/t to $1,710/t-$1,750/t, all ex-tank Singapore.

FOB Asia

Group I SN150 was assessed up by $20/t at $1,310/t-$1,350/t

SN500 also edged up by $20/t to $1,340/t-$1,380/t

Bright stock prices were also higher by $20/t at $1,490/t-$1,530/t

Group II 150N was holding at $1,520/t-$1,560/t

500N was steady at $1,560/t-$1,600/t

Group III

The 4 cSt grade was assessed higher by $10/t at $3,670/t-$3,710/t

6 cSt was stable at $3,640/t-$3,690/t

8 cSt was holding at $3,470/t-$3,510/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.