In the meantime, paraffinic base oil availability was anticipated to grow because most plants were running at top rates and a unit has recently resumed production following a turnaround and catalyst change, which has allowed the producer to maximize output. On the naphthenic side, a similar situation emerged as a key producer has restarted its plant following a comprehensive maintenance program and additional volumes have entered the supply stream.

While posted prices remained largely unchanged, consumers have not given up hopes that suppliers would adjust values down before Dec. 31 as they might try to incentivize orders to reduce inventories and avoid tax repercussions on existing stocks. Historically, there have been many instances when producers adjusted prices before year-end, but this year may be an exception. Producers explained that lowering prices would not necessarily lead to increased sales because demand was not likely to improve as fundamentals in downstream segments remained lackluster. Steep diesel prices also limited the potential of refiners lowering base oil values.

Group I
The API Group I segment continued to reflect balanced-to-tight conditions, with the lighter grades reported to be less available than the heavy grades. This was partly attributed to seasonal patterns as demand for the light grades tends to increase during the colder months. Demand for industrial oils and metalworking fluids were heard to have slowed down due to reduced manufacturing rates, while consumption for marine and railway applications was healthy.

Global Group I plant rationalizations over the last two decades, together with a heavy turnaround schedule earlier in the year led to tight fundamentals that carried over into the third and fourth quarters. However, the tight conditions started to ease in September/October, and some participants noted that the start-up of ExxonMobil’s Resid Upgrade Project in Singapore had resulted in additional Group II products coming into the global market and replacing Group I base oils in some cases, particularly bright stock as the plant produces an extra-heavy Group II base oil with similar characteristics.

Bright stock continued to elicit steady buying interest from domestic consumers, as well as from export destinations such as Brazil, where local producer Petrobras was understood to have suffered some production setbacks and will shut down for at least two weeks. Despite the tighter conditions in Brazil, domestic prices for December were expected to be reduced from November levels. A 9,000-metric-ton cargo was expected to have shipped from the U.S. Gulf to Brazil between Nov. 15-25, and a second cargo of around 7,000 tons was also likely to have covered the same route on similar dates. A recent fire at a YPF refinery in La Plata, Buenos Aires, had also led to a sudden uptick in buying interest from Argentina.

U.S. suppliers continued to ship products to Mexico on a regular basis, but requirements have been somewhat irresolute as buyers were hoping to see larger discounts in the coming weeks and delayed purchases for as long as possible. At the same time, suppliers have been fairly measured in terms of discounts as Group I grades were not showing significant length. There were still reports of importers facing difficulties with Mexican import licenses, but by and large, most importers have been able to renew last year’s permits.

Group II
The light-viscosity Group II base oils have become more plentiful, following a period of tight conditions, but they were still not oversupplied, according to sources. Until late October, the light grades had seen more limited supply levels because producers had prioritized the production of Group II+ cuts to meet PCMO and HDEO specifications. Group II 220N was fairly balanced against current demand, and the 600N has become more available, but was not overflowing, according to sources.

Given improved availability following the restart of the Excel Paralubes plant in Louisiana in late October, Group II base oil prices were under pressure, particularly as increased output was expected from the plant as a new catalyst has been installed, sources said. The unit had been running at reduced rates for most of the year until it was shut down for maintenance in early October. There was no producer confirmation about the plant’s operations or supply plans.

Rerefined base oils were described as balanced to slightly long, depending on the cut. A recent turnaround had restricted supplies temporarily, and an upcoming shutdown in the first part of 2026 could also strain availability as the rerefiner plans to prepare inventories to meet contractual obligations during the outage. The reduced supply was likely to be offset by waning demand during the last few weeks of the year and the first quarter of 2026.

While U.S. Group II suppliers typically find eager buyers in India, South America and other overseas destinations during the last quarter, plentiful supplies in Asia and other regions and difficulties in making prices work have thwarted the conclusion of business, with fewer cargoes moving out of the U.S. than anticipated.

Group III
Ample supplies and sluggish demand were exerting downward pressure on Group III base oils. Some of the domestic requirements were being filled by U.S. producers manufacturing Group III base oils for their own downstream lubricant operations. The start-up of Group III production at the Vertex rerefinery in Mobile, Alabama, could also meet some of the domestic Group III demand.

Nevertheless,  imports will continue to play a key role in the U.S. as domestic production is not sufficient to meet blossoming Group III and Group III+ demand, with regular shipments expected to continue from Canada, Asia and the Middle East. Competition between products that have official approvals and base oils that are not fully approved, but are of similarly high quality, persisted.

Group III base oils consumption from the PCMO segment has declined with the end of the driving season in the U.S, but an uptick in fuel and motor oil demand was expected ahead of the Thanksgiving holiday week, when thousands of drivers hit the road to see friends and family. Nearly 82 million Americans are expected to travel 50 miles or more over Thanksgiving weekend this year. About 73 million plan to make the journey by car, while close to 6 million will fly, according to media reports.

Naphthenics
The drop in crude oil prices has a more direct impact on naphthenic base oil prices and the latest crude oil price developments have certainly undermined base oils values. Growing supplies and declining demand, particularly for the heavy grades from the rubber and tire segment, were exerting additional pressure. Demand for the heavy cuts was forecast to remain soft through the end of the year and into 2026. On the other hand, demand for the lighter grades from the transformer oil sector remained steady and supplies have tightened, with at least one supplier reporting being sold out of the 40 and 60 grades and trying to clear a backlog of orders. However, winter weather in many areas and economic concerns could dampen construction activity and reduce pale oil demand from the electrical, transformer and infrastructure segments.

Buying interest on the export front has also subsided compared to earlier in the year, making it more difficult for suppliers to find a home for their extra volumes.

The lengthening supply was partly attributed to the restart of Ergon’s naphthenic base oils plant following a comprehensive turnaround that started in early September and was completed in mid-October. At the same time, San Joaquin Refining plans to start a three-week routine turnaround at its refinery in California in mid-January and was expected to start building inventories to meet requirements during the shutdown, which could limit spot availability in the coming weeks.

Crude Oil
Crude oil futures slipped earlier in the week on a potential peace agreement between Ukraine and Russia, which would allow Russia to export more oil and lead to oversupply conditions, but prices steadied as the American Petroleum Institute estimated that U.S. crude oil inventories had fallen by 1.9 million barrels in the week ending Nov. 21, ahead of the Thanksgiving holiday. Crude oil inventories had gained 4.4 million barrels in the previous week.

• West Texas Intermediate January 2026 futures settled on the Nymex at $57.95 per barrel on Nov. 25, down from $60.74/bbl for front-month futures on Nov. 18.
• Brent futures for Jan. 2026 delivery were trading on the ICE at $62.44/bbl on Nov. 26, down from $64.40/bbl for front-month futures on Nov. 19.
• Louisiana Light Sweet crude wholesale spot prices were hovering at $60.91/bbl on Nov. 24. Spot prices had settled at $61.66/bbl on Nov. 17, according to the U.S. Energy Information Administration.

Diesel
Low-sulfur diesel wholesale, Nov. 24 (Nov. 17), EIA
New York Harbor: $2.47 per gallon ($2.59/gal)
Gulf Coast: $2.32/gal ($2.43/gal)
Los Angeles: $2.40/gal ($2.63/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 26, 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