International sanctions on Russian crude oil producers have also forced regional refineries in Asia to change their crude oil sources. India’s imports of Russian crude oil, for example, were expected to drop sharply in the near term but were not likely to stop entirely. In November, imports from Russia remained firm as refiners maximized discounted oil purchases but volumes were expected to decline in December and January. The discounted Russian crude helped Indian refiners such as Indian Oil Corporation, Bharat Petroleum Corp. Ltd., Hindustan Petroleum Corp. Ltd. and Reliance Industries Ltd. achieve strong profits in the last two years, the Business Standard reported. However, importing crude oil from other countries would likely force refiners to pay higher prices and this could affect the price of refined products.

Ongoing economic uncertainties affected business and manufacturing in most countries of the region, with some of these difficulties linked to the higher tariffs imposed by United States President Donald Trump, which have dampened export transactions and reduced demand for raw materials such as base oils and industrial lubricants.

Group I
Compared to the other base oil grades, API Group I base stocks have been in a tighter position, which allowed them to maintain more stable pricing and even gain some ground over the last few weeks. Among these cuts, bright stock still reigned supreme because it is a difficult grade to replace and is used in a wide range of applications, which has supported prices. It has recently seen healthy demand from the marine and railway segments but consumption of this high-viscosity cut tends to weaken during the winter months and this has begun to place downward pressure on prices.

Group I supplies have been snug due to ongoing demand and reduced global capacity as several Group I base oil plants have been decommissioned in the last twenty years. Fresh spot offers typically emerge from Southeast Asia and Japan and this week was no exception. Sources reported that a few light grade, heavy grade and bright stock cargoes were available from Thailand and Japan despite an ongoing shutdown at a Japanese plant.

A key Thai producer was heard to have about 2,000 metric tons of SN500 available for export and trimmed its prices for small quantities of SN500 and bright stock compared with its previous offers. Its offer for SN500 was understood to hover near $965 per metric ton FCA Thailand and bright stock at around $1,340/t FCA Thailand. A previous flexibag offer of SN500 of Thai origin had been mentioned at $980/t FCA Thailand and bright stock at around $1,350/t-1,360/t FCA Thailand.

Offers of small volumes of SN500 and bright stock emerged from Japan as well but the light grade was not available because it remained tight from most origins. This supported stable pricing for SN150.

A Chinese producer also entered the spot market with small Group I volumes for export earlier this month but the offers appeared to have been suspended for the time being because they had elicited lukewarm buying interest.

Group I ex-tank prices in general have come under pressure in China because of ample supplies but the heavy grades seemed to bear most of the downward pressure. Imported bright stock was deemed plentiful and distributors were heard to have decreased pricing to compete with lower values from domestic suppliers. Bright stock demand also declines in the winter months and this has led to rising supply levels.

In India, consumers seemed to be holding adequate volumes of Group I grades, particularly because they had planned shipments ahead of a scheduled turnaround at a refinery in the Middle East that started this month. Buying appetite for Group I cuts was considered steady to soft, with importers adjusting prices down for the heavy grades from the previous week to spur sales. Prices for the light grades were maintained or increased slightly because of steeper gasoil prices and fewer readily available cargoes.

Uncertainties persisted in India regarding the impact on downstream products because of reduced Russian oil imports, with buyers wondering whether refiners would adjust pricing in the coming months. Domestic base oil prices were heard to have inched up in November. This countered the general sentiment that global base oil values would continue to face downward pressure because of growing supplies and weakening demand during the last few weeks of the year.

Group II
Activity was more muted this week as buyers were concerned about finishing the year with too much inventory and preferred to avoid receiving shipments during the year-end holidays. It was therefore difficult to arrange not only shipments at acceptable price levels but also convenient logistics.

Some suppliers continued to offer combined cargoes of the light grades with the heavy cuts to reduce inventories, which were expected to grow as production rates were generally high. Heavy grade margins over gasoil were still attractive compared with the lighter grades and this encouraged refiners to maintain the same output ratio. However, at least one South Korean producer was understood to have withdrawn bulk offers for the time being although flexibag volumes were still available.

A second South Korean supplier was expected to communicate fresh offers this week, with buyers hoping that the producer’s need to reduce inventories would encourage it to lower pricing, particularly for the heavy grades because these cuts were plentiful. The supplier was heard to have required co-loading of 150N with 500N in recent weeks.

In China, reduced demand levels and ample supplies continued to place downward pressure on domestic Group II heavy grades while prices for the light grades were more stable. This was partly the result of an uptick in buying interest for the 150N cut, likely due to seasonal requirements that were expected to persist until the spring. Similarly, imported light grade prices were able to maintain a steady course while the high-viscosity cuts underwent small downward adjustments because offers were more plentiful and demand tends to slow in the colder months.

Import prices for Taiwanese 500N were heard to have been reduced by Chinese distributors to attract buyers. In Taiwan, domestic prices in November remained fairly steady compared with October and December values were expected to be announced by Formosa Petrochemical, the sole Group II producer, on the last business day of November.

In India, the current market scenario for the Group II light grade versus the heavy grade has become familiar because it has not changed much over the last few weeks. The light grades were less available because of reduced regional supplies and firmer buying interest and prices were lifted by higher gasoil values. Import prices for the Group II 500N grade were heard to have slipped by about $10-15/t CFR India week on week because of sluggish buying interest and ample supplies. At the same time, import prices for the 150N edged up by $5/t CFR India on more limited availability.

Volumes of the light grade from a South Korean supplier were heard to be strained and required to be lifted in conjunction with the heavy grade. The high-viscosity cuts have been more plentiful and requirements less vigorous than for the lighter counterparts.

A second South Korean producer was heard to have suspended spot offers because it was not under pressure to reduce inventories.

Despite the tighter supplies of the light grade, Indian buyers resisted the steeper offers because they hoped prices would be exposed to downward pressure through the end of the year. Additional spot offers for United States supplies were expected to enter the market and discussions for December shipments were heard to be taking place this month but volumes were not as plentiful as expected.

National oil company Indian Oil Corp.’s Group II supply was not expected to be affected by Group III expansion work at the Haldia refinery but could see reduced availability because the producer planned to conduct maintenance before the start-up of the expanded facilities near the end of the year. The turnaround on the Group II trains was heard to have started this month but the producer has built inventories to cover contractual requirements during the outage.

Group III
Group III base oil supply and demand largely mirrored the situation of other base oil grades in Asia, with the lighter viscosity grade 4 cSt considered tighter than the other grades and prices moving up at most destinations as a result.

With the exception of a turnaround in the Middle East, most Group III plants were running well. The recent restart of the SK-Pertamina Group III plant in Dumai, Indonesia, brought additional supplies to the region. The plant was taken offline for about ten days as a precautionary measure after a fire at the associated refinery on October 1, with customers receiving uninterrupted term supplies.

Spot availability from a South Korean producer was strained but this was partly offset by declining demand during the last few months of the year.

In China, domestic suppliers continued to offer attractive prices to compete with imports. Having secured an adequate customer base and keeping some imported volumes away, Chinese producers appeared to have achieved a more comfortable position in terms of market share. However, imported volumes were expected to continue flowing into China because many blenders have approvals linked to specific suppliers.

In India, Group III prices were assessed as steady, with contract commitments expected to be sufficient to meet current demand. Most requirements come from the automotive segment, which has seen healthy activity in India over the last few months.

New domestic Group III capacity in India was expected to displace some import volumes once the plant comes online. National oil company Indian Oil Corp. was expected to complete an expansion of its Group III plant in Haldia in the fourth quarter, which might reduce India’s reliance on Group III imports. The refinery was heard to have shut down this month for maintenance on the existing Group II trains.

Most Group III prices were reported within the published ranges in Asia but at least one producer’s prices carried a premium because of its full approvals and ability to offer global supply from multiple production sites. The producer’s lowest prices for all grades were above the high end of the published FOB Asia ranges. The published ranges may be adjusted in the coming weeks pending further market input.

Shipping

• A 3,000-ton lot was quoted for shipment from Ulsan, South Korea, to Sri Lanka and India for November dates.
• A 2,000-ton cargo was discussed for lifting in Yeosu, South Korea, to Haiphong, Vietnam, between Nov. 22-25.
• A 3,500-ton parcel was under discussion for shipment from Onsan, South Korea, to Huizhou, China, on December 18.
• A 1,100-ton cargo was expected to be shipped from Onsan to Bangkok, Thailand, between Dec. 10-20.
• A 400-ton parcel was mentioned for shipment from Onsan to Nantong, China, in late November.
• About 500 tons were expected to be lifted in Onsan for Zhangjiagang, China, in late November.
• Approximately 6,000 to 8,000 tons were discussed for shipment from Yeosu, South Korea, to Singapore between Nov. 25 and Dec. 5.

Production

The global base oil supply and demand balance has eased as a number of turnarounds have been completed and plants have been restarted, although reduced output at a few units together with permanent closures over the last few years may continue to limit supplies in some base oil segments. Turnarounds that took place earlier in the year are still listed below because they may have affected base oil pricing at the time of completion and beyond.

Group I

• Luberef (Saudi Aramco Base Oil Co.) scheduled a 45-day turnaround at its plant in Yanbu, Saudi Arabia, from mid-November until December. The unit produces Group I, Group II and Group III base oils. The plant underwent an expansion in 2017. The company shut down its plants in Yanbu and Jeddah for about a week in Q2 2025.

• Eneos completed maintenance at its Kainan plant (May–June) and Mizushima B plant (February–May) in Japan. Mizushima A was scheduled for maintenance from October to November.

• Two Eneos Group I plants were permanently closed in recent years.

• Group I supply in Japan has been tight following extended shutdowns at Idemitsu’s Chiba unit, which was completed at the end of July or early August, and Cosmo Oil’s Yokkaichi unit.

• Chennai Petroleum scheduled a turnaround at its Group I plant in Chennai, India, in September and October for about one month.

• Thai Lube Base Oil’s Group I unit in Sriracha, Thailand, was shut for 45 days from mid-July to the second half of August.

• PetroChina’s Dalian refinery began a permanent shutdown in 2023. The base oils unit closed in late 2024, with full closure by July 2025. Inventory clearance was scheduled by the end of August.

• CNPC’s Fushun plant in Liaoning was expected to increase Group I production to offset the Dalian closure. Bright stock capacity was estimated at 60,000 tons per year.

• IRPC’s Group I plant in Thailand was offline for maintenance in May.

• HPCL in India restarted its Group I unit in late April or early May following a partial shutdown.

• Sinopec completed a two-month turnaround at its Gaoqiao Group I and II plant in May.

• CPCL conducted one week of maintenance at its Chennai Group I plant in April.

• Pertamina’s Group I plant in Cilacap, Indonesia, underwent maintenance from mid-January to late February or early March.

Group II

• ExxonMobil completed an expansion of its Singapore Group II unit and began on-spec production in August. The producer started offering an ultra-heavy Group II grade with characteristics similar to bright stock.

• Indian Oil Corp. was understood to have begun a one-month turnaround at its Group II plant in Haldia in early November. The producer was expected to complete an expansion of its Group III capacity in Haldia at the end of the year.

• Bharat Petroleum delayed a brief turnaround to October from earlier in the year but there was no confirmation that the plant was shut down in October.

• Formosa Petrochemical postponed a scheduled turnaround and catalyst change at its Mailiao, Taiwan, plant from the fourth quarter of 2025 to 2026.

• Hyundai Oilbank Shell Base Oils plans to shut down its plant in Daesan, South Korea, in April 2026 for about 45 days. The company cut run rates in March for several weeks because of feedstock limitations but increased rates in late May.

• BPCL completed maintenance at its Group II plant in Mumbai, India, in March but there were reports of reduced output that was expected to last for several more months.

• HPCL reportedly conducted a 45-day turnaround at its Group II trains from May until July following delays.

• Excel Paralubes completed a scheduled turnaround at its Lake Charles, Louisiana, plant in October. The plant had been running at reduced rates for most of the year, which limited spot availability in the United States.

• GS Caltex completed a 45-day turnaround at its Group II and III unit in Yeosu, South Korea, from late February to May, which limited spot supply.

• An unplanned outage at CNOOC’s Group II unit in Huizhou affected China’s second-quarter availability.

• Sinopec’s Gaoqiao plant completed its turnaround in May and its Jinan Group II unit was shut for a month in April.

• Chevron restarted its Group II plant in Pascagoula, Mississippi, after a four-week turnaround in late May.

• Motiva restarted operations in June after a three-week turnaround at its hydrocracker in Port Arthur, Texas, that began in late May. Some production issues lingered for several weeks, reducing the producer’s Group II inventories.

Group III

• A fire at SK-Pertamina’s refinery in Dumai, Indonesia, broke out on October 1 but was quickly extinguished with no impact on base oil supply. The Dumai Group III plant was shut down for maintenance after the fire and has since been restarted. Term supplies were not expected to be affected. Pertamina also operates a Group I plant in Cilacap, Indonesia. The Dumai refinery is a joint venture between Kilang Pertamina Internasional and South Korea’s SK Enmove.

• Indian Oil Corp. was expected to complete an expansion of its Group III capacity in Haldia at the end of the year. The plant was heard to be undergoing a one-month turnaround in November.

• SK Enmove completed a partial turnaround at its Ulsan Group III plant in late June while production on other trains continued.

• Adnoc shut its Group II and III plant in Ruwais, UAE, for two-three weeks in early May.

• Bapco began a turnaround and catalyst change at its Group III plant in Sitra, Bahrain, in May and completed it in late July.

• Hainan Handi had an extended shutdown at its plant in China starting in mid-June.

• Sinopec was expected to restart its Group III plant in Yanshan in late July.

Prices

Crude

Crude oil futures steadied on Monday after last week’s drop of about 3% as analysts weighed the possibility that the U.S. Federal Reserve would cut interest rates and the impact of a potential Russia-Ukraine peace deal that would roll back sanctions that have curtailed Russian oil exports.

The United States and Ukraine were set to resume discussions on a revised plan for the peace deal ahead of a Thursday deadline set by U.S. President Donald Trump after agreeing to adjust an earlier version that critics said was too favorable to Moscow, Reuters reported.

• Brent January 2025 futures were trading at $62.01 per barrel on Nov. 24, down from $64.26/bbl for front-month futures on Nov. 17 (ICE Futures Europe).
• Dubai crude futures (Platts) for November 2025 settled at $62.65/bbl on Nov. 21, down from $64.83/bbl for front-month futures on Nov. 14 (CME).

Base Oils

Spot base oil prices in Asia were mixed as some heavy grades experienced downward adjustments because of weaker demand against growing supplies, some grades held steady, and a few edged up on tighter availability. The price ranges 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 was steady at $780/t-$820/t
SN500 was down by $10/t at $940/t-$980/t
Bright stock prices were steady at $1,340-$1,380/t
Group II 150N held at $820/t-$860/t
500N slipped by $10/t to $980/t-$1,020/t

FOB Asia
Group III grades were steady to firm

4 cSt inched up by $10/t to $1,090/t-$1,130/t
6 cSt held at $1,060/t-$1,100/t
8 cSt hovered at $920/t-$960/t

Group I SN150 inched up by $10/t to $690/t-$730/t
SN500 slipped by $10/t to $780/t-$820/t
Bright stock was lower by $10/t at $1,170/t-$1,210/t
Group II 150N was up by $10/t at $720/t-$760/t
500N was steady at $820/t-$860/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.