Weekly Asia Base Oil Price Report

In related market news, Bloomberg reported that Sinokor, a little-known South Korean shipowner, dominated Hormuz transits in September as the company’s vessels moved more barrels than the next three owners combined. While Iran has kept the strait closed to most traffic, there continued to be reports of tankers carrying crude oil and refined products that were permitted to cross if they were from nations that Iran considers friendly or neutral (such as Omani, Japanese, Chinese, or South Korean-operated fleets) as long as they have no active U.S. or Israeli military links.

Brent futures reached a peak of $116.72 per barrel on Friday—the highest since April—on Houthi claims of attacks on Aramco’s Yanbu facilities, the Rabigh Oil Refinery and the East-West pipeline, but Saudi Arabia confirmed that the Saudi-led coalition had intercepted the missiles and had prevented any damage, easing some of the pressure on crude prices. The coalition also carried out counterstrikes targeting Houthi-held territory in Yemen. Brent traded 1.8 percent lower on Monday at around $114/bbl because of diplomatic talks to de-escalate tensions between Saudi Arabia and Iran.

Group I

API Group I base oil spot prices were again reported as stable-to-firm, although the number of spot offers that surfaced this week was rather limited. Producers continued to express concerns about potential crude oil supply shortages, and they sought to build base oil inventories to continue covering contractual obligations. Saudi oil shipments and facilities continued to be under threat of Iran-backed Houthi rebels, particularly in the Red Sea, but there have also been reports of an increase in the number of tankers being able to traverse the Strait of Hormuz.

At the same time, buyers were hesitant to secure volumes beyond those they were receiving under contract because of uncertainties in downstream markets and the risk of paying high prices that may fall later. Some consumers had no choice but to reach out to suppliers as their inventories were low, but most were looking for small cargoes to keep daily operations running.

There were no fresh spot offers heard 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.

An offer for Group I SN150, SN500 and bright stock for November shipment from Japan was quickly snapped up within the region due to the dearth in spot supplies. It could not be ascertained whether the purchaser had been a Taiwanese buyer who had sought Group I volumes through a tender the previous week.

As a result of the limited number of regional offers, and the difficulties in acquiring Group I and Group II cargoes from Saudi Arabia—which were facing loading challenges and were also forced to take a longer route around South Africa—and from other origins in the Middle East, prices in India have moved up.

Imported Group I SN150 and SN500 inched up by $10 per metric ton week on week, while bright stock also saw a moderate increase of around $10/t, all on a CFR India basis. Given the climbing prices and the logistics involved in acquiring foreign material, Indian buyers were also eager to secure domestic products.

Demand in India has ticked up because of the end of the monsoon season, and a reluctance by consumers to acquire extra volumes earlier, when prices were hovering at high prices due to regional supply tightness. Buyers had hoped that by the end of the monsoon season, the Middle East conflict had been resolved, and the market would have returned to more “normal” conditions, but this was not the case. At the same time, because of scarce regional availability, offers from regional producers had been quickly accepted by buyers in other countries, leaving less availability for India.

Additionally, in the past, India would often be able to source Group I grades from Russia or Iran, and supplies from these sources were not forthcoming due to production disruptions in the case of Russia, as facilities have been damaged by Ukrainian strikes, and in Iran due to the conflict with the U.S., and were also subject to sanctions.

Group I prices for domestic base oils also rose in China, pressured by scarce vacuum gasoil supplies and climbing feedstock prices. Instead of discouraging demand, however, the rising prices were seen as a sign of potential Group I shortages in the coming weeks, and this led buyers to rush and secure fresh cargoes.

Refiners were also facing pressure to produce more fuels as China has resumed exports of clean fuels (gasoline, diesel, and jet fuel) after a brief one-week suspension at the start of October 2026, according to Reuters. The government had originally restricted refined fuel exports in March 2026 due to Middle East conflict disruptions impacting crude flows, before relaxing limits between July and September. Shipments restarted following Golden Week in early October.

Even though bright stock is typically in short supply in China, a slowdown in demand during the colder winter months, along with increased availability from a producer who restarted operations after a turnaround resulted in additional volumes becoming available.

Group II

In a similar fashion to Group I base oils, Group II spot prices were stable-to-firm, with ex-tank Singapore indications moving up on account of tight availability. Some producers have temporarily retreated from the spot market because of crude oil supply concerns linked to the Middle East disruptions.

Refiners were also under pressure to prioritize fuel production as prices have skyrocketed and there have been global shortages of gasoil/diesel, with particular concern during the winter season as requirements typically increase. While some Asian refiners are able to use crude from origins other than the Middle East, this may affect their yields.

The sole Taiwanese Group II producer, Formosa Petrochemical, has embarked on a turnaround that started in mid-October. According to sources, the turnaround was on schedule and there were no spot offers from the producer as it was meeting term requirements from existing stocks. Spot offers were expected to be announced after the turnaround, depending on the successful completion of the maintenance program and domestic consumption levels at that time.

A key South Korean exporter was understood to have curtailed its heavy-viscosity base oil exports this month as it is favoring production of other refined products.

Given the current limited number of regional spot offers and reduced crude supplies from the Middle East, domestic Group II prices in China have moved up. This has reduced the premium of import prices over that of locally produced base oils.

China — the world’s largest crude oil importer–imports a significant portion of its crude from the Middle East, amounting to roughly 40% to 50% of China’s total crude oil imports.

Given the ongoing conflicts and blockades affecting the Strait of Hormuz and Red Sea shipments, China’s reliance on Middle East shipments dipped during parts of 2026, leading refiners to tap into the country’s strategic reserves and increasing oil imports from alternative sources like Brazil and Russia. Aside from the crude supply disruptions, as mentioned above, the Chinese government has also allowed exports of clean products, and this has caused a tightening of vacuum gasoil feedstock for domestic operations.

In India, import prices have inched up this week on healthy demand and tight regional supplies. Prices also responded to Indian buyers’ need to compete with consumers at other destinations where prices were higher. Group II 70N climbed between $30-40/t and 150N and 500N imports rose by $10-20/t all on a CFR India basis.

There were expectations that demand would continue to be strong over the next couple of months because inventories had been drawn down and activity in most segments was expected to improve following the monsoons. Regional availability was anticipated to remain tight, while deep-sea cargoes from the U.S. that typically make their way to India once producers there start to release stocks held during the hurricane season were largely absent this year. However, a number of cargoes were quoted in shipping circles that were under consideration for shipment from South Korea to India next month.

Domestic supplies of Group II grades have tightened because one of the local producers was maximizing Group III output, as prices were substantially higher and there appeared to be favorable export opportunities, although Group II cargoes have also been exported to the Middle East. A scheduled turnaround this quarter may tighten supplies further. Steep gasoil/diesel values were also exerting pressure on domestic prices.

Group III
While there continued to be upward pressure on Group III prices given ongoing global shortages and expectations that the supply conditions would not be improving any time soon since products remained trapped in the Persian Gulf, price increases seen during the week were fairly moderate. The 8 cSt was largely stable as demand for this grade was less robust than for the other two main cuts. This was partly because of consumer resistance to increases as prices were already hovering at historic highs and the difficulties blenders were facing in recouping the soaring production costs. Aside from sky-high Group III prices, manufacturers were dealing with heightened additive, transportation, packaging, energy and insurance costs.

The escalation in hostilities in Saudi Arabia and the involvement of other countries, together with Iran’s control of the Strait of Hormuz and attacks on vessels continued to thwart marine loadings in Abu Dhabi, Bahrain and Qatar. Base oil plants in these countries were heard to be shut down or running at reduced rates, with some shipments being able to be moved to neighboring countries by truck or ship-to-ship transfers.

Following the loadings of two base oil cargoes in the Middle East in September and October, there were no other reports of base oils being able to evade the shipping constraints in the region.

At least one Group II/Group III plant in Asia has resumed production following a turnaround, which could help ease some of the tightness. The Malaysian Group III producer was heard to have completed a 45-day turnaround at its plant in Malacca which started in late August. 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.

In China, buying appetite for Group III grades has weakened given the steep pricing and blenders’ difficulties in absorbing the higher production costs as lubricant increases were not widely accepted. In any case, buyers opted for domestic products whenever possible, because imports were still hovering at record-high levels. There was an increase in the use of Group II grades that are able to replace Group III cuts.

The Chinese coal-to-liquids (CTL) producer offered limited 4 cSt spot volumes, and this kept upward pressure on prices. There has also been increased demand for rerefined base oils, but it was reported that production has fallen because of reduced availability of used oil feedstock.

In India, Group III 4 cSt and 6 cSt import prices were reported to have jumped by $50/ton on a CFR India basis because of the difficulties in locating cargoes. The higher prices received support from increased domestic prices as well. The increases served as additional incentive for Indian blenders to use more Group II cuts in Group III applications whenever substitution was possible. Demand 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.

Indian products continued to attract interest in Europe and the U.S. because of a dearth of supply in these regions and competitive prices, but these base oils did not carry the same approvals as those of specific Group III grades of Asian or Middle East origin. There were no fresh shipments reported from India to those regions, however.

Shipping

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

• 10,000 tons quoted for prompt shipment from Ruwais, Abu Dhabi, to West Coast India
• 4,000-ton cargo also mentioned for prompt shipment from Onsan, South Korea, to Yanbu, Saudi Arabia
• About 18,000 tons discussed for late October shipment from Sohar, Oman/West Coast India to Antwerp-Rotterdam-Amsterdam.
• 18,000 tons quoted for lifting in Sitra, Bahrain, to Fujairah, United Arab Emirates, Oct. 28-Nov. 2
• 18,000-ton lot was discussed for shipment from Yeosu, South Korea, to West Coast India, Nov. 15-30
• 6,000-ton cargo mentioned for lifting in Yeosu to Port Klang, Malaysia, Nov. 1-10.
• 20,000-40,000-ton lot expected to be shipped from Yeosu to West Coast India, first half of November.
• 1,000-ton parcel discussed for shipment from Onsan to Thailand, mid-Nov.
• 3,000-ton lot was mentioned for lifting in Onsan to Savannah, U.S., second half November.
• 5,000-ton cargo under discussion to be loaded in Nantong, China, for Turkey, November.
• 15,000-ton lot quoted for shipment from South Korea to Venezue, second half November

Production

Persian Gulf

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 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, Bahrain, on March 5 following an Iranian attack. The country’s Ministry of Interior reported that the fire had been brought under control without providing further details about potential damage. Bapco operates a 400,000 tons per year Group III base oil facility in Sitra, within the Bapco refinery complex. Sources familiar with the plant’s operations said that Group III production was unaffected by the fire, but some reports indicated that production had stopped for damage assessments. An official report was not available by the publishing deadline.

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 oil’s 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 arrive in the U.S. in late 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

• 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.
• In China, Shanxi Lu’an started a partial turnaround at its plant in Changzhi in early September and restarted at the end of the month.
• Also in China, Hongrun Petrochemical started a shutdown at its plant in Weifang in early July and completed it in late September.
• 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 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 on Monday, Oct. 26, on news that the Saudi defense minister would be traveling to Iran to de-escalate the current conflict. The price retreat came after futures hit new highs on Friday following several attacks by Iran-allied Houthi militants on Saudi Arabia, which fueled renewed fears of disruptions to global crude supplies.

• Brent December futures were trading at $115.86 per barrel on Oct. 26, up from $107.90/bbl for front-month futures on Oct. 19 (ICE Futures Europe).
• Dubai crude futures (Platts) for November 2026 settled at $115.73/bbl on Oct. 23, up from $108.39/bbl for front-month futures on Oct. 16 (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 $1,510/t-$1,550/t
SN500 assessed higher by $10/t at $1,550/t-$1,590/t
Bright stock firmer by $20/t at $1,740-$1,780/t.

Group II
150N adjusted up by $10/t to $1,680/t-$1,720/t
500N edged up by $10/t to $1,700/t-$1,740/t

FOB Asia

Group I
SN150 up by $10/t at $1,290/t-$1,330/t
SN500 edged up by $10/t at $1,320/t-$1,360/t
Bright stock prices higher by $10/t at $1,470/t-$1,510/t

Group II
150N holding at $1,520/t-$1,560/t
500N was steady at $1,560/t-$1,600/t

Group III
4 cSt assessed higher by $10/t at $3,660/t-$3,700/t
6 cSt inched up by $10/t to $3,640/t-$3,690/t
8 cSt 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.