Weekly Asia Base Oil Price Report

Meanwhile, crude oil prices have fallen from their lofty levels from two weeks ago on hopes of a diplomatic resolution, but remained firm, exerting upward pressure on base oils. Crude oil and base oil shipments were still mostly trapped in the Persian Gulf as few vessels were allowed to transit Hormuz, offering little relief to the API Group III segment. Refinery economics also pushed producers to preserve base oils margins against those of fuels like diesel as prices continued to hover at multi-year highs.

Crude oil futures tumbled on Monday, with Brent crude falling by more than 3% to slightly above $94 per barrel from around $108/bbl a week ago following comments by president Trump downplaying the prospect of further U.S. attacks on Iran, even though strikes on Saudi Arabia continued and there were reports of fresh incidents involving tankers in the Strait of Hormuz, which reignited concerns about Middle East crude oil supply disruptions.

Group I

Group I base oil spot prices saw some gains again this week, as spot availability remained limited because producers were still concerned about crude oil supply disruptions, firm feedstock prices and a need to prioritize contractual obligations. These issues were not expected to disappear until the Strait of Hormuz reopens to all tanker traffic and hostilities in the Middle East cease, including those of Iran-backed Houthi rebels who have targeted Saudi energy facilities and oil shipments.

At the same time, buyers did not seem as desperate to secure product as when the war started as they have been able to source products from alternative origins or from local producers, and have diversified their suppliers. Many consumers were also trying to stick to contractual volumes and stayed away from the spot market as much as possible.

Additionally, both suppliers and buyers aspired to end the year with lean inventories to avoid taxes on idle stocks, leading to reduced base oil consumption as well.

As has been the case for the last three weeks, no fresh spot offers emerged from Thailand and Indonesia, 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. Thai volumes have been allotted to term business and this restricted the availability of spot bulk and flexibag cargoes for November loading. Some refineries in Southeast Asia were also heard to have reduced operating rates.

In India, activity has slowed down due to the celebration of Diwali, starting on November 8. Before the holidays, demand was described as healthy as many buyers had exhausted inventories and were seeking replenishments after the monsoon season. The reduced number of spot offers within 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 due to Houthi rebels’ attacks on vessels–kept upward pressure on Group I import prices in India.

Imported Group I SN150 and SN500 cuts were heard to have edged up by $5-$10 per metric ton from last week, while bright stock prices were stable to softer, all on a CFR India basis. These indications received additional support from firm domestic values as supplies were tight and domestic suppliers were heard to have increased prices given robust fundamentals. Exports of Indian Group I cuts the previous month also contributed to the tightening of supplies.

Uncertainties related to imported cargoes, such as delivery times and other logistical issues encouraged Indian buyers to seek domestic products.

A tightening of regional spot offers of Group I cargoes within Asia also drove import prices up in China. Group I prices for domestic base oils remained firm in China and received support from high vacuum gasoil values and snug availability.

Demand has experienced an uptick as some buyers needed to replenish stocks after trying to make do with existing inventories over the last several weeks. Despite softer demand for bright stock during the winter months, there has been some renewed buying interest, but spot supplies were limited, resulting in higher prices as well.

Group II

Group II spot prices were stable-to-soft despite few fresh spot offers having surfaced as demand has declined in key markets such as India, where the Diwali festivities resulted in reduced activity for a few days, and in China, where buyers favored domestic products versus imports. Slipping feedstock prices also exerted downward pressure on base oil values. Despite the weaker buying interest, India still remained the main target for Asian producers as the market was showing signs of strengthening, while demand from other areas such as Southeast Asia was more lackluster. South Korean products were heard discussed at lower levels in Southeast Asia because of sluggish offtake, weaker freight rates and plentiful supplies of the light grade.

Producers have also pulled back from the spot market because of crude oil supply concerns given ongoing Middle East disruptions. While some Asian refiners are able to use crude from origins other than the Middle East, their yields may have been affected. The heavy grade seemed to be less readily available than the light grade and this resulted in higher pricing.

But suppliers also saw weaker buying interest as blenders faced difficulties when they tried to offset the higher production costs from downstream segments due to consumer resistance to steeper pricing, amid worries about holding high inventories at the end of the year coupled with economic uncertainties.

Aside from a more limited number of spot offers from South Korea to the wider Asian market, there were no spot cargoes available from Taiwan. The sole Taiwanese Group II producer has shut down its Group II plant in Mailiao for maintenance. The turnaround started in mid-October, and was expected to be completed in early December. 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 increased by New Taiwan Dollars (NTD) 0.89 per liter and its 500N rose by NTD 2.50/l. (NTD 33 = US$1). Shipments under contract were expected to be met as scheduled throughout the month.

Taiwanese shipments to China have receded over the last couple of years due to increased Chinese restrictions and duties. Chinese importers continued to secure cargoes from other origins as well, mainly South Korea, but also Singapore and Saudi Arabia. However, China’s massive domestic Group II production expansion over the last ten years has increasingly reduced its reliance on overall imports.

Buying interest for domestic products was robust, particularly given reduced regional spot volumes and higher prices. Import prices were generally firm, supported by tight regional supplies. One domestic supplier was heard to have raised its posted price for the Group II 150N grade on renewed buying interest, while another lowered its postings for the light grade.

Restrictions on crude supplies from the Middle East supported stable Group II prices as well. 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.

In India, there were expectations that cargoes would be arriving from Singapore, Taiwan, South Korea and Saudi Arabia, although cargoes from the Middle East were expected to take longer to arrive than usual because of their rerouting around the tip of South Africa.

A large cargo had also loaded in the U.S. bound for India last month. U.S. suppliers have started to release the extra inventories held during the hurricane season, and some of these volumes were expected to make their way to India, although the quantities may not be as plentiful as in years past as the domestic U.S. market has been tight throughout the year. Participants kept monitoring developments following the U.S. midterm elections, since they expected changes in trade policies and a possible resolution to the war in Iran, which could translate into increased availability of Middle East base oils.

Import prices in India were stable-to-firm this week, supported by limited regional availability and healthy buying interest. The 70N cut was heard to have inched up by around $10/t on a CFR India basis due to limited domestic supplies and few imported cargoes. Discussions for November shipments have been largely finalized and participants have started to focus on December.

Domestic producers have increased their list prices for November given healthy demand and tighter domestic supply after local producers were able to export several cargoes. The start-up of a new domestic Group II plant in India this month was expected to bring more volumes into the market. However, a second Group II unit has started a turnaround, which was anticipated to tighten supplies.

Group III

Group III base oil shortages continued as shipments from the Middle East were still largely absent, keeping upward pressure on prices. While Group III production at Asian plants was reported as stable, run rates and shipments out of Abu Dhabi, Bahrain and Qatar remained severely restricted. A couple of Group III cargoes were recently loaded in the Persian Gulf and have made their way to the U.S., and suppliers were heard to be working on additional shipments, but serious risks remained.

There was still a significant difference between OEM-approved material versus products without approvals, sources noted. For instance, there were offers of bulk cargoes of Chinese material at attractive prices, with some of this product expected to move to India.

An increase in local Group III production in China has partly dampened buying interest for imports. The Chinese coal-to-liquids unit was heard to be running at top rates. A Chinese producer was heard to have started up a new Group III unit, although commercial volumes were still limited. Another domestic producer was understood to have raised its Group III base oil prices due to the tight global availability.

Meanwhile, the Malaysian Group III producer was heard to have completed a 45-day turnaround at its plant in Malacca in October, although no official confirmation could be obtained. Sources said the producer was offering small flexibag cargoes of Group III base oils this month.

In India, values for imported Group III base oils were reported as stable-to-firm because of tight conditions and limited regional supplies. Import prices were supported by steep domestic prices as well.  Demand for domestic products also remained strong as buyers preferred to avoid logistical and transportation risks and long lead times associated with imports. At the same time, there appeared to be ongoing opportunities for Indian Group III exports.

Imported Group III 4 cSt prices moved up during the week on strong demand, while the 6 cSt and 8 cSt grades saw slightly less consumption and prices remained steady from a week ago.

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, including potential projects in India.

Shipping

Details of recent shipments surfaced this week, with a 6,000-ton cargo heard to have shipped from Daesan, South Korea, to the U.S. West Coast on the Argent Iris in early November. About 13,000 tons were shipped from Ulsan, South Korea, to West Coast India on the Rooibos Galaxy the first week of November.

Several base oil cargoes were under discussion for shipment this month and the next:

• 5,000-ton cargo was quoted for prompt shipment from Daesan, South Korea, to Mumbai, India.
• 10,000 tons were mentioned for possible prompt lifting in Ruwais, Abu Dhabi, to West Coast India.
• 2,000-ton cargo was expected to be shipped from Sriracha, Thailand, to West Coast India between Nov. 20-30.
• About 14,000 tons were mentioned for possible shipment from Yanbu and Jeddah, Saudi Arabia, to Fujairah, United Arab Emirates, Nov. 19-27.
• Approximately 10,000 tons were discussed for shipment from Yanbu, Saudi Arabia, to Lagos, Nigeria, mid November.
• 13,000-ton lot was under discussion for shipment from Kandla, India, to Jebel Ali, United Arab Emirates, in the second half of Nov.
• 2,000-ton parcel was quoted for shipment from Nantong, China, to Port Klang, Malaysia, in late Oct.- early Nov.
• 2,000-ton cargo was on the table for shipment from North China to the Straits, Nov. 25-30.
• 18,000 tons were being considered for shipment from Ulsan /Yeosu, South Korea, to West Coast India, second half November.
• 3,000-ton cargo was looking to be shipped from Ulsan to Karachi, Pakistan, second half November.
• 2,300-ton parcel was on the table for shipment from Onsan to China, mid-November.
• 1,700-ton cargo was discussed for shipment from Yeosu to Rugao, China, Dec. 1-10.
• 4,000-ton lot was mentioned for shipment from Yeosu to Merak, Indonesia, first half of December.
• About 5,000 tons were expected to be lifted in Yeosu to Vietnam, 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 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-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.
• Bharat Petroleum Corp. Ltd. (BPCL) was heard to have started a one-month turnaround at its Group II plant in Mumbai, India, this month.
• 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 more than 3% on Monday, November 9, on hopes of a U.S.-Iran peace deal as president Trump signaled restraint on Iran despite fresh attacks on tankers in the Strait of Hormuz.

• Brent January 2027 futures were trading at $94.24 per barrel on November 9, down from $108.62/bbl for front-month futures on Nov. 2 (ICE Futures Europe).
• Dubai crude futures (Platts) for December 2026 settled at $96.64/bbl on Nov. 6, down from $115.67/bbl for front-month futures on Oct. 30 (CME).

Base Oils

Spot base oil prices were mixed, with most Group I and Group II receiving support from firm crude oil prices and a limited number of spot offers. Group II 150N prices edged down on more plentiful supplies. 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 edged up by $10/t to $1,530/t-$1,570/t
SN500 moved up by $10/t to $1,570/t-$1,610/t
Bright stock firmer by $20/t at $1,790-$1,830/t.

Group II
150N steady at $1,690/t-$1,730/t
500N edged up by $10/t to $1,720/t-$1,760/t

FOB Asia

Group I
SN150 assessed up by $10/t at $1,320/t-$1,360/t
SN500 edged up by $10/t to $1,350/t-$1,390/t
Bright stock prices steady at $1,490/t-$1,530/t

Group II
150N adjusted down by $20/t to $1,500/t-$1,540/t
500N steady at $1,560/t-$1,600/t

Group III
4 cSt assessed higher by $10/t at $3,680/t-$3,720/t
6 cSt stable at $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.