Weekly Asia Base Oil Price Report

Geopolitical tensions continued to impact crude oil prices, with futures slipping Monday on news that the United States and Iran would likely engage in a third round of negotiations, following U.S. threats of an attack on Iran if the country refused to engage in nuclear discussions, which had driven futures up the previous week.

New tariff turmoil in the United States raised fresh concerns about global economic prospects and oil demand moving forward. The U.S. Supreme Court ruled President Donald Trump’s sweeping tariffs unconstitutional, with Trump responding with an announcement that he intended to impose new temporary tariffs on U.S. imports from all nations, lifting most of the levies from the current 10% to 15% under a different set of laws.

Group I

With the return of players following the Lunar New Year holidays, business was anticipated to pick up. Indeed, fresh Group I offers emerged from Southeast Asia during the week. Southeast Asia and Japan continue to be the main areas with Group I production sites, and most cargoes moving in the region originate there, particularly following the shutdown of a number of Group I plants in recent years.

Fresh offers from a Thai Group I producer surfaced, after the supplier had stayed away from participating in spot export business in the previous weeks as it was reported to have been sold out. The producer placed small Group I cargoes on the market for March lifting, with 100 metric tons of SN500 offered at $860/t and 100 tons of bright stock at $1,260/t free carrier (FCA) Thailand. These prices were valid through February 20 and reflected small downward adjustments from February offers, which had been pegged at $870/t for the SN500 and $1,275/t for bright stock FCA Thailand.

Similarly, the Indonesian producer has also returned to the market with Group I offers, with at least one transaction heard concluded at $1,210/t ex-works Jakarta for 200 tons of bright stock.

In China, discussions were still thin following the Lunar New Year celebrations. Increased availability of Group II cuts that are sometimes used as substitute for Group I in certain applications, along with plentiful domestic Group I supplies were expected to dampen buying interest, but China still has a deficit of the heavy grades. Bright stock in particular was anticipated to come into focus in negotiations over the next few weeks.

Distributors were expected to have some cargoes available, as buying interest had waned ahead of the holidays, and they had done their utmost to keep prices steady to protect margins. Some buyers kept a close eye on Thai supplies as many Group I heavy-grade spot cargoes originate there, and maintenance season at Chinese refineries might lead to reduced domestic availability.

In India, import prices for the Group I SN150 were heard to have inched up by $5 per metric ton on a CFR India basis on limited availability and continuous buying appetite as the light grades see increased seasonal demand compared to the heavy grades. Import prices for the SN500 cut were reported as steady, while bids and offers for bright stock were heard taking place at slightly lower levels around $5/t-10/t below the previous week. There were also competitive offers for Middle East material, but buyers were hesitant to secure these cargoes due to international sanctions and tensions between the U.S. and Iran, which could lead to a potential conflict and production disruptions.

Numerous buyers were able to purchase domestic supplies in India, which were reported at steady prices for February transactions.

Group II

Transactions involving Group II grades were taking place at similar levels to the previous week as trading was thin as a result of holidays in many countries. The light grades were tighter than the heavy cuts, leading to firmer pricing. Spot offers from South Korea were slightly more limited in number as one supplier has started to build inventories for an upcoming turnaround and has curbed spot availability.

At the same time, a second South Korean supplier was understood to have been able to conclude transactions by offering the bundling of light grades with heavy grades.

With key markets such as China remaining quiet due to the holidays, the focus of discussions involving Northeast Asian spot cargoes shifted to India, where demand was more spirited.

In China, there were expectations that Group II import prices might be propped up by renewed buying appetite and reduced availability of South Korean material following the holiday period, although there should be supplies moving from Taiwan as well. A domestic producer had lowered prices ahead of the holidays — a sign that it was holding ample supplies — and other sellers were expected to have availability when participants stepped back into the market.

In India, import prices were steady to firm, with the light grade seeing upward adjustments of around $5/t on a CFR India basis on stronger buying interest than for the heavy grades amid more limited availability. A recent jump in feedstock values also offered support to pricing.

Group III

A balanced-to-tight supply and demand situation allowed suppliers to keep Group III prices stable or even raise them slightly, with assessments showing moderate upward revisions this week.

There were some concerns about reduced Group III supplies following a fire at Repsol’s Cartagena, Spain, industrial complex on Jan. 26. The fire had broken out in Topping Unit 3, which was on older section of the refinery and separate from other production plants, limiting the risk of the fire spreading, according to various media outlets. The blaze was put out after a few hours, and there were no injuries reported. The Cartagena complex includes a 135,000-ton Group I unit and a 630,000-ton Group II and III unit operated through a joint venture with South Korea’s SK Enmove. The company said that feedstock supply and base oil operations were only partially affected; however, the producer expected to be able to meet term commitments and continue deliveries as scheduled. Spot availability was expected to be limited though. While this situation was likely to mostly affect availability in Europe, given a fairly tight global supply, it may also impact supply conditions in other regions since cargoes from the SK plant in South Korea may be shipped to other regions to support the company’s operations.

In China, price assessments remained unchanged on a lack of transactions given the Lunar New Year holidays. Distributors have some inventories at hand and were expected to present offers as participants return to business, but a number of buyers had already secured cargoes before the spring festival, and demand was therefore likely to improve only marginally the first few days after the holidays.

In India, Group III requirements were being fulfilled through term volumes, with more limited interest shown for spot cargoes. Despite downward pressure on the 6 and 8 centiStoke grades during the previous weeks given ample supplies against weak demand, prices have stabilized as the market appeared to have tightened. Import prices for the 4 cSt edged up by $5/t on a CFR India basis as demand for this cut was more robust and availability was strained. Indian manufacturing operations and auto plants were running well ahead of the end of the fiscal year on March 31, with lubricant demand showing an uptick as well.

Most Group III prices were reported within the published ranges in Asia, but at least one producer’s prices carry a premium because of its full slate of finished lubricant 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.

Shipping

• Approximately 10,000 metric tons were discussed for shipment from Daesan/Pyeongtaek, South Korea, to Mumbai at the end of Feb.
• A 4,000-ton lot was expected to be shipped from Singapore to West Coast India in late Feb.
• A 3,000-ton parcel was on the table for shipment from Thailand to China between Feb. 22-25.
• A 2,000-ton cargo was mentioned for shipment from Cartagena, Spain, and/or Ulsan, South Korea, to Derince, Turkey, at the end of Feb.
• A 3,400-ton parcel was quoted for shipment from Malacca, Malaysia, to West Coast India at the end of Feb.
• A 6,200-ton lot was likely to be shipped from Yeosu, South Korea, to Vietnam in mid-March.
• A 10,000-metric ton cargo was mentioned for possible liftting in Ulsan/Yeosu to Mumbai and Hamriyah, United Arab Emirates, in mid-Feb.
• A 4,000-ton lot was quoted for shipment from Taiwan to Pakistan in mid-March.
• A 2,000-ton parcel was on the table for lifting in Yeosu to Rugao, China, between March 3-10.
• About 2,000 tons were mentioned for shipment from to Onsan, South Korea, to Jingjiang, China, in mid-Feb.
• A 700-ton lot was also expected to be lifted from Onsan to Nantong, China in mid-Feb.
• A 3,000-ton parcel was quoted for shipment from Yeosu to Tianjin, China, between March 1-10.
• About 5,000 tons were expected to be shipped from Taiwan to the UAE at the end of Feb.
• A 1,000-ton cargo was discussed for lifting in Onsan to Vietnam between March 8-12.

Production

A number of turnarounds have already been announced for 2026. The latest information is provided below, along with turnarounds 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 scheduled a 45-day turnaround at its plant in Yanbu, Saudi Arabia, from mid-November until December 2025. The unit produces Group I, Group II and Group III base oils. The plant underwent an expansion in 2017. The company had shut down its plants in Yanbu and Jeddah for about a week in Q2 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.
• Eneos’s Mizushima A underwent maintenance from October to November 2025 in Japan.
• Two Eneos Group I plants were permanently closed in recent years.
• Chennai Petroleum completed a turnaround at its Group I plant in Chennai, India, in September/October 2025 for approximately one month.
• Thai Lube Base Oil’s Group I unit in Sriracha, Thailand, was shut for 45 days from mid-July to second half August 2025.
• PetroChina’s Dalian refinery began a permanent shutdown in 2023. The base oils unit closed in late 2024, with full closure completed in July 2025. Inventory clearance was scheduled by end of August 2025.
• CNPC’s Fushun plant in Liaoning was expected to increase Group I production to offset the Dalian closure. Bright stock capacity is estimated at 60,000 t/y.

Group II

• Hyundai Oilbank Shell Base Oils plans to shut down its plant in Daesan, South Korea, in late March/April 2026 for approximately 45 days.
• CNOOC has scheduled a turnaround at its Taizhou plant in the second quarter of 2026.
• ExxonMobil has 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.
• Formosa Petrochemical postponed a scheduled turnaround and catalyst change at its Mailiao, Taiwan, plant from the fourth quarter of 2025 to third quarter of 2026.
• Excel Paralubes completed a scheduled turnaround at its Lake Charles, Louisiana, U.S. plant in October 2025. The plant had been running at reduced rates for most of the year, limiting spot availabilities in the U.S., but a catalyst change has allowed the company to maximize output.
• Motiva restarted operations in June 2025 after a three-week turnaround at its Port Arthur, Texas, U.S., hydrocracker beginning in late May. However, some production issues lingered for several more weeks, reducing the producer’s Group II inventories and tightening Group II spot availability in the second half of 2025.

Group III

• Petronas plans to shut down its Group II/Group III Melaka plant in Malaysia for a turnaround in mid-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 should bring more Group III supplies to the market in early 2026.
• A fire at SK-Pertamina’s refinery in Dumai, Indonesia, broke out on October 1, 2025, but was quickly extinguished, with no impact to base oil supply reported. The Dumai Group III base oil plant was shut down for maintenance after the fire and was restarted shortly after. Term supplies were not expected to have been affected. Pertamina also operates a Group I plant in Cilacap, Indonesia. The Dumai refinery is a joint venture between Indonesian state-run Kilang Pertamina Internasional and South Korean producer SK Enmove.
• Sinopec restarted its Group III plant in Yanshan, China, in late July 2025.

Prices

Crude Oil

Crude oil futures fell after President Trump announced a tariff hike from 10% to 15%, fanning investors’ fears about weaker global growth and reduced fuel demand. Markets kept a close eye on trade developments and geopolitical tensions as these continued to impact crude prices.

• Brent April 2026 futures were trading at $72.37 per barrel on February 23, 2026, up from $67.70/bbl for front-month futures on Feb. 16 (ICE Futures Europe).
• Dubai crude futures (Platts) for March 2026 settled at $70.32/bbl on Feb. 20, 2026, up from $66.48/bbl for front-month futures on Feb. 13 (CME).

Base Oils
Spot base oil prices in Asia were mixed, reflecting somewhat muddled market conditions and activity remaining subdued in many nations during the Lunar New Year holidays.

The price ranges 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 was steady at $790/t-$830/t
SN500 was holding at $860/t-$900/t
Bright stock prices were unchanged at $1,270-$1,310/t 

Group II 150N was adjusted up by $10/t to $840/t-$880/t
500N was assessed unchanged at $900/t-$940/t

FOB Asia
Group I SN150 was steady at $660/t-$700/t
SN500 was unchanged at $680/t-$720/t
Bright stock prices slipped by $10/t to $1,070/t-$1,110/t

Group II 150N was stable at $720/t-$760/t
500N was holding at $750/t-$790/t

Group III grades edged up by $10/t:
4 cSt was heard at $1,100/t-$1,140/t
6 cSt was assessed at $1,070/t-$1,110/t
8 cSt was gauged at $910/t-$950/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.