Weekly Asia Base Oil Price Report

Crude oil futures jumped by 8% on Monday morning, offering support to climbing base oil prices and encouraging some buyers to secure cargoes on concerns of further increases in the coming weeks.

Group I

Given changing market conditions and a tightening supply and demand balance, API Group I spot prices have moved up week on week. Bright stock remained the shining star within this category as it was still attracting attention and numbers have edged up on more limited supplies. Offers for Group I grades from most producers have edged up on tightening availability and climbing crude oil and feedstock costs.

Last week, a number of offers had emerged from Thailand, Indonesia and Japan for March shipments, and the numbers discussed had been generally lower than those achieved in previous transactions. However, this week, March offers from Thailand were more limited as one of the producers appeared to be mostly sold out, while a second supplier was also reported to have little spot availability.

An Indonesian producer was heard to have concluded business the previous week as well, including a bright stock cargo that fetched around $1,210 per metric ton ex-works Jakarta. A fresh tender was reported late last week involving Indonesian Group I light grades, a mid-vis grade and heavy grades which will close on March 3.

Japanese cargoes had not featured very prominently in the spot market in the previous weeks as most of the country’s production is used domestically and there has been more limited spot supply for export. This week, there was even less availability as a Group I producer was understood to have lowered its production rates after experiencing an unplanned shutdown last month.

The firming Group I price trend was also observed in China, where Group I imported volumes have tightened, with the exception perhaps of bright stock, which was said to be more plentiful, not only in terms of imports, but also for domestic supplies. As a result, offers for bright stock were maintained, while prices for the other grades have inched up. However, buying interest was still subdued as the market emerges from an extended holiday period and buyers prefer to use up existing inventories before stepping back into the trading scene.

Group I import prices also edged up in India, mirroring conditions in other parts of Asia, although bright stock seemed to buck the trend and prices have stabilized. However, whether this will continue to be the case was not certain–a prolonged conflict in the Middle East could reduce shipments of Group I grades from that region and disrupt logistics, exerting upward pressure on all prices. Supplies from Saudi Arabia had already been curbed before the conflict erupted. Group I SN150 and SN500 grades were heard to have increased by $5-10/t week on week on a CFR India basis. A deal involving bright stock was heard to have been concluded at $1,175/t CFR India for March loading, but the origin could not be confirmed.

Many buyers turned to domestic producers in hopes of being able to secure stable supply, but domestic refiners were facing challenges of their own as U.S. sanctions required them to stop processing Russian crude, which had been available at heavily discounted values and had allowed suppliers to sell refined products at competitive prices.

Group II

Tightening supply and demand factors given an upcoming plant turnaround, steeper crude oil and feedstock prices, and concerns about production and logistical disruptions due to the conflict in the Middle East all drove Group II prices up.

“Everyone is now closely monitoring raw material costs and logistics issues,” a source noted. There appeared to be heftier increases for the light grades than for the heavy grades given more plentiful availability of the latter.

The strengthening price trend was evidenced in higher domestic values nominated by the sole Taiwanese Group II producer, Formosa Petrochemical, for its light grades. According to sources, the producer has increased its domestic list prices for the 70N and 150N grades by New Taiwan Dollars (NT$) 0.60 per liter (about US$0.02/l), but prices for the 500N were unchanged, with an effective date of March 1. (NT$1=US$0.03)

Spot offers from South Korean producer Hyundai Oilbank/Shell were heard to have been temporarily paused as the supplier has started to build inventories for an upcoming turnaround starting at the end of March, and it also suffered an unexpected production setback at its refinery last month, which has ostensibly caused feedstock supply issues. However, there were expectations that the producer might be able to offer some small spot cargoes later this month for April shipment.

A second South Korean producer who seems to have more plentiful availability of the heavy grades versus the light grades has increased its offer prices for April spot cargoes. Given the recent supply issues in the region amid heightened demand, the producer’s supply levels were heard to have tightened and it has also temporarily suspended spot offers.

In China, consumption levels remain lackluster following the extended Lunar New Year holidays. Buyer inventories were reportedly high and producers also seem to hold healthy stocks, reducing the urgency for consumers to acquire more product and placing downward pressure on domestic prices. Group II 500N was heard to have edged down for ex-tank China transactions.

In terms of imports, the availability of competitively-priced Taiwanese heavy grade for March shipment and even more attractive prices from South Korean suppliers also lent a bearish sentiment to the market. However, the light grades were less readily available and as such, prices were stable to firm.

With many uncertainties plaguing the market in China, buyers were hesitant to increase stock levels, but at the same time, there was nervousness regarding regional prices as South Korean suppliers paused offers and crude oil prices were pressured up due to the U.S.-Israel-Iran conflict.

In India, there appeared to be an uptick in base oil buying interest as lubricant demand from the automotive and industrial segments tends to increase in March during the lead-up to the end of the fiscal year on March 31. The Indian economy seemed to be a powerhouse that was not showing any signs of slowing, and base oil and lubricant consumption levels appeared to be on a steady growth path as well. While domestic producers have increased production rates and have also expanded capacity to include premium grades, there was still a strong need for base oils imports.

Group II regional offers, particularly of the light grades, were more limited during the week and as a result, import prices firmed. The 70N, 150N and 500N all underwent upward adjustments of between $5-10/t on a CFR India basis. The recent jump in feedstock values also offered additional support.

Group III
A balanced-to-tight supply and demand ratio continued to prop up stable Group III prices in Asia, although the jump in crude oil values and potential shipment disruptions for cargoes originating in the Middle East have started to place upward pressure on FOB Asia prices. Prices for the 4 centiStoke grade, in particular, have moved up in places like India due to snug availability against steady demand. Meanwhile, the Malaysian refiner was heard to have kept prices largely steady.

In China, Group III import prices edged up because of strained regional spot availability, but domestic suppliers kept prices steady as they hoped to protect or increase market share. A number of buyers had already secured cargoes before the new year festival and demand was therefore not particularly robust.

In India, Group III prices were stable to firm, with the 4 cSt reported to have inched up by $5/t on a CFR India basis on account of tighter supply compared to the 6 cSt and 8 cSt. Prices were exposed to upward pressure due to the fresh conflict in the Middle East, which drove crude oil prices up and could disrupt base oil shipments. Given that most buyers were amply supplied through term contracts, spot buying interest was somewhat subdued.

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 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

Details of recently concluded shipments emerged this week, with a 5,920-ton cargo heard to have been shipped from Ulsan, South Korea, to Australia on the Golden Chie between Feb. 15-17. About 1,800 tons were lifted from Daesan, South Korea, to Bangkok, Thailand, between Feb, 16-18, on the Nan Lian 18. A 3,820-ton parcel was shipped from Mailiao, Taiwan, to Batangas, Philippines, between Feb. 10 and 12, on the Quarterback J.

Discussions for upcoming shipments were ongoing:

• A 10,000-ton lot was expected to be shipped from Mailiao, Taiwan, to West Coast India in late March.
• A 4,200-ton cargo was mentioned for shipment from Melaka and Port Klang, Malaysia, to Genoa, Italy, and Antwerp, Belgium, in the first half of March.
• An 8,300-ton lot was expected to be shipped from Thailand to Bangladesh on March 1-3.
• A 1,100-ton cargo was discussed for shipment from Onsan, South Korea, to Bangkok, Thailand, between March 29 and April 10.
• A 1,600-ton cargo was on the table for shipment from Onsan to Taichung, Taiwan, between March 24 and 31
• A 6,200-ton lot was likely to be shipped from Yeosu, South Korea, to Vietnam in mid-March.
• About 4,000 tons were quoted for shipment from Onsan to Singapore in mid-March.
• A 9,000-ton lot was mentioned for shipment from Ruwais, United Arab Emirates, to Mumbai and Chennai in early March.

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

• 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 recent years.
• Luberef scheduled a 30-day turnaround at its Group I/Group II plant in Yanbu, Saudi Arabia, in August 2026. The company had previously completed maintenance at the unit from mid-November until December 2025. The plant underwent an expansion in 2017. 
• 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.
• 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 early April 2026 for approximately 45 days.
• CNOOC has scheduled a turnaround at its Taizhou, China, plant in the second quarter of 2026.
• State-owned Sinopec Jingmen Co. plans to have a turnaround at its plant in Jingmen City, China, in November. It is the largest production plant for base oils and waxes in Central-South China.
• 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.
• 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.
• 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

• Pertamina-SK will be completing a 40-day turnaround at its plant in Dumai, Indonesia, in May 2026.
• Petronas plans to shut down its 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 2025 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 jumped on Monday after the U.S. and Israel launched a coordinated attack over the weekend against Iranian targets, killing key officials and damaging military facilities. However, analysts were concerned that a de-escalation of the conflict would erase recent gains, which is what happened last June when the U.S. struck Iranian nuclear facilities. Conversely, a prolonged war would help support prices and offset a planned OPEC+ output increase.

• Brent May 2026 futures were trading at $79.49 per barrel on March 2, 2026, up from $72.37/bbl for front-month futures on Feb. 23 (ICE Futures Europe).
• Dubai crude futures (Platts) for March 2026 settled at $71.81/bbl on Feb. 27, 2026, up from $70.32/bbl for front-month futures on Feb. 20 (CME).

Base Oil
Spot base oil prices in Asia were stable-to-firm, with tightening supplies and climbing feedstock and crude oil prices driving some prices up.

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 assessed higher by $10 at $800/t-$840/t
SN500 held at $860/t-$900/t
Bright stock prices edged up by $10/t to $1,280-$1,320/t 
Group II 150N adjusted up by $10/t to $850/t-$890/t
500N assessed unchanged at $900/t-$940/t

FOB Asia
Group I
SN150 inched up by $10/t to $670/t-$710/t
SN500 also edged up by $10/t to $690/t-$730/t
Bright stock prices assessed higher by $10/t at $1,080/t-$1,120/t

Group II
150N increased by $10/t to $730/t-$770/t
500N was holding at $750/t-$790/t

Group III
4 cSt heard at $1,100/t-$1,140/t
6 cSt assessed at $1,070/t-$1,110/t
8 cSt 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.