Base oil consumption levels have slipped due to seasonal patterns, and this, along with steady production at most refineries and the release of hurricane-related stockpiles resulted in ample availability of paraffinic grades. The turnaround at a major United States facility in October had impacted spot supply of some grades, but the restart of the plant and increased operating rates at the facility were bringing more product into the market. On the naphthenic side, there had been a tightening of supply during a key turnaround, and this had propped up values, but the unit has restarted and just like on the paraffinic side, increased availability of pale oils was exerting downward pressure on prices.
Consumers remained hopeful of a general downward price adjustment for base oils since supply has lengthened and demand was not expected to pick up until February next year. Decreases are not uncommon during the last quarter of the year when suppliers try to entice buyers to take as much product as possible to reduce the product overhang. However, producers were also keeping an eye on crude oil and feedstock prices, which have been somewhat volatile over the last week.
Crude oil values continued to be swayed by global geopolitical developments, and were impacted by Ukrainian strikes on Russian energy infrastructure, oil tankers being diverted in the Strait of Hormuz, and mounting tensions between the U.S. and Venezuela this week.
Some downstream lubricant segments continued to feel the strain of recently imposed reciprocal tariffs because these led to increases in raw material costs and a slowdown in demand from certain applications such as industrial oils as manufacturing rates have declined. Lubricant sellers also try to lower inventory levels ahead of tax assessments at the end of the year.
There were rumblings of base oil buyers requesting temporary voluntary allowances given plentiful supply and receding spot values. While there were no reports of a general decrease in pricing, some suppliers may be granting isolated discounts on a case-by-case basis, depending on volumes and other terms, but further details were not forthcoming.
Group I
Market participants described the supply and demand situation in the API Group I segment as more balanced than in the Group II category, despite the fact that both segments were suffering from sluggish demand from the heavy-duty and passenger car segments following the end of the peak driving season. A slowdown in manufacturing rates dampened consumption of base oils for industrial lubricants and metalworking fluids. Winter weather in many parts of the U.S. was also anticipated to result in fewer vehicles on the road and reduced agricultural activity in the coming weeks. At the same time, suppliers mentioned healthy appetite for marine lubricants.
The Group I base oils had started the slower base oils season in a tighter position that the Group II cuts because of a series of turnarounds earlier in the year, together with shrinking global Group I production and steady export demand. While the Group I light grades were less available than the heavy grades, no shortages were reported.
Bright stock was still seeing fairly healthy demand in the domestic market, while an unexpected uptick in requirements from Brazil and Argentina due to an unplanned outage at a local base oils plant in Brazil and a refinery fire in Buenos Aires also led to tighter supplies in the U.S. Buying interest from other outlets in South America also contributed to the reduced availability and supported a small increase in spot prices.
Regular shipments to Mexico proceeded as planned, but requirements have been soft because buyers hoped to see lower prices in December and opted for waiting to acquire additional volumes. Given that the Group I supply overhang was not large, suppliers were hesitant to offer significant price discounts for the time being. Ongoing difficulties with the renewal of Mexican import licenses also represented roadblocks on the road to the conclusion of business deals.
Group II
Group II base oil prices were under pressure because of improved availability, following the restart of the Excel Paralubes plant in Louisiana. Not only did the plant resume production, but it was also expected to increase output rates given that a new catalyst has been installed, according to sources. Before the turnaround, the unit had been running at reduced rates for several months. There was no producer confirmation about the plant’s operations or supply plans.
The light Group II base oils have gained in supply levels, but have lost ground in terms of pricing. Spot values were heard to have slipped by a couple of cents per metric ton week on week. In the previous months, the light grades had been tighter because producers had prioritized the production of Group II+ cuts to meet PCMO and HDEO specifications. The Group II 220N grade was fairly balanced against current requirements, but the 600N has also tightened somewhat.
Rerefined base oils were balanced to slightly long, depending on the cut. Given a recent turnaround and an upcoming shutdown in the first part of 2026, for which the rerefiner was heard to be buidling inventories, most rerefined base oils were snug. As was the case for virgin base oil producers, rerefiners have seen demand wane “as it typically does from a seasonal perspective,” a rerefiner explained. Rerefined 100N grades appeared to be following typical market trends, with lessening demand and continued price pressures. At least one rerefiner reported being sold out on the 200N cut, as has been the case all year for this particular supplier.
Export activity was slightly disappointing. U.S. producers typically have copious options to ship products to India, the Middle East and South America as they try to reduce inventories to avoid tax repercussions on high stocks at the end of the year. However, plentiful supplies in other regions and lower price expectations have yielded fewer opportunities this year, although there has been keen buying interest from Brazil and West Coast South America.
Group III
Spot prices for Group III grades have come under pressure due to plentiful supplies as imports continued to flow into the U.S. from Canada, Asia and the Middle East. Group III base oils consumption from the PCMO segment has declined as the peak driving season has ended and driving activity tends to fall during the winter months, with the exception perhaps of the Thanksgiving holiday week.
Spot prices for the Group III cuts were said to have edged down by a couple of pennies for gallon, according to sources. Improved supply levels of Group II and Group II+ cuts also placed pressure on Group III values. There was also ongoing competition between products that have official approvals and base oils that are not fully approved, but are of similarly high quality, which some blenders are able to use in certain applications.
The impact of Excel Paralubes’ turnaround at its Group II and Group III plant in Lake Charles, Louisiana, in October 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 remained exposed to downward pressure on growing supplies and declining demand, particularly for the heavy grades from the rubber and tire segment, which was forecast to be soft next year as well. The restart of a key naphthenic base oil plant has allowed for more product to enter the supply system and this, together with generally lower crude oil prices than earlier in the year, were exerting downward pressure on prices. At the same time, a key producer was also expected to start building inventories ahead of its turnaround in January and this may limit spot supplies.
A supplier commented that it was short on light viscosity grades and slightly long on the heavy grades. In fact, the said producer was working on a backlog of orders for the 40 and 60 grades. Sellers noted that export business was offering higher margins, but volumes have declined too. One of the larger export markets has been Mexico, but buying activity has slowed down there as well.
Ergon’s naphthenic base oils plant in Vicksburg, Mississippi, had been shut down from early September until mid-October and was heard to be running well after undergoing a comprehensive maintenance and upgrade program. While spot supply had been somewhat strained during the turnaround, the company’s customers had not been affected by the shutdown as the producer had built inventories to cover contract commitments during the outage.
San Joaquin Refining plans to start a three-week routine turnaround at its refinery in California in mid-January and was expected to build inventories to meet requirements during the shutdown.
Crude
Crude oil futures dipped on Wednesday on news of higher crude inventories in the U.S. than expected, which deepened analysts’ concerns about global oversupply. However, the decline was stemmed by reduced fuel levels given attacks on Russian oil infrastructure.
- West Texas Intermediate December 2025 futures settled on the Nymex at $60.74 per barrel on Nov. 18, down from $61.04/bbl for front-month futures on Nov. 11.
- Brent futures for January 2026 delivery were trading on the ICE at $64.40/bbl on Nov. 19, down from $64.61/bbl for front-month futures on Nov. 12.
- Louisiana Light Sweet crude wholesale spot prices were hovering at $61.66/bbl on Nov. 17. Spot prices had settled at $61.44/bbl on Nov. 7, according to the U.S. Energy Information Administration.
Diesel
Low-sulfur diesel wholesale, Nov. 17 (Nov. 7), EIA
New York Harbor: $2.59 per gallon ($2.53/gal)
Gulf Coast: $2.43/gal ($2.39/gal)
Los Angeles: $2.63/gal ($2.68/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 19, 2025
(Prices are FOB basis, in U.S. dollars per gallon and U.S. dollars per metric ton).
Archived base oil price reports can be found through this link: https://www.lubesngreases.com/category/base-stocks/other/base-oil-pricing-report/
Historic and current base oil pricing data are available for purchase in Excel format.
*ExxonMobil prices obtained indirectly.
**Rerefiner
