Weekly Asia Base Oil Price Report

While the current situation was particularly likely to affect base oil shipments from Middle East producers, Asian refiners will also be impacted as many countries import crude oil and feedstocks from the region. To partly offset the global oil price surge, U.S. President Donald Trump has granted Indian and Asian refiners permission to purchase Russian crude oil. Back in early February, India had agreed to stop purchases of Russian oil when the country signed a bilateral trade agreement with the U.S.

News outlets reported that Saudi Aramco had started to reroute some of its crude oil shipments to the Red Sea port of Yanbu, but other producers have been forced to stop shipments altogether as Iran has vowed to attack any vessels that attempt passage through the Strait, and key insurance companies have withdrawn coverage as well. Shipping giants such as Maersk and Hapag-Lloyd have officially suspended all transits through the Strait of Hormuz and the Red Sea. Around 150 vessels have been stranded in the region, awaiting a safe reopening of the Strait.

In Qatar, Qatar Energy halted production of liquid natural gas (LNG) and other products following drone attacks on its facilities in Ras Laffan and Mesaieed on March 3. The facility will not be able to return to normal production for at least a month, and has declared force majeure, according to the company’s website. While it could not be ascertained whether the Shell/Qatar Petroleum Pearl gas-to-liquids base oil unit in Ras Laffan had suffered any damages, base oil production may be curtailed as the unit utilizes natural gas from the refinery to produce Group III base oils. The plant has a nameplate capacity of 1,372,000 metric tons of Group II/III base oils.

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 damages. Bapco operates a 400,000-metric 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.

Meanwhile, crude oil prices continued their steep ascent, even after Opec+ members pledged to increase output by 206,000 barrels per – almost two-thirds more than was previously announced.

Group I

Due to the heightened market uncertainties and the threat of feedstock supply shortages, a majority of producers in Asia suspended spot bulk offers during the week. “We have not got any offers of base oils at all in Asia,” a market participant lamented, adding that some buyers were trying to find alternative sources of product, while others preferred to wait. Buyers tried to turn to suppliers in other regions, but U.S. and European producers were withholding offers as well.

Thai producers suspended spot offers last week, but continued to meet contract commitments. While some spot transactions had been discussed early in the week, it became clear that the Iran conflict would drive crude oil and feedstock prices up and producers therefore withdrew offers by the end of the week. Similarly, spot offers from Singapore have dried up as participants assessed the market situation.

Group I and Group II base oil shipments from Asian suppliers that were en route to Middle East receivers have been disrupted due to the closing of the Strait of Hormuz and the cancellation of vessel movements. Spot cargoes that had been transacted before the war will be mostly fulfilled, except for those whose destination was a country in the Persian Gulf, in which case the cargoes have been diverted to India. This has relieved some of the price pressure on Indian prices from potential supply disruptions at Luberef. However, it was also heard that Indian holding tanks were filling up fast.

Early last week, before additional details about the Iran conflict had emerged, base oil spot offers had started to climb as it became increasingly evident that crude oil and feedstock prices would remain at elevated levels for some time. But suppliers started to worry that if they offered material at a certain price for shipment within the next few weeks, feedstock prices and freight rates may shoot up and producers would not be able to cover their production costs. Additionally, given that several ships are unable to leave ports, the number of vessels transporting base oils has been curtailed.

Group I prices have been notionally adjusted up to reflect the jump in crude oil and feedstock prices and the tightening availability.

Bright stock prices from distributors in China have been lifted given a tightening supply and demand ratio and prospects of reduced availability of imports. While some blenders were using up existing stocks, they expressed interest in replenishment barrels, but were facing difficulties in securing cargoes and receiving firm quotes as conditions were changing rapidly.

In India, there has been a sudden surge in availability of Group I cargoes that had originally been destined to the Middle East and had to be diverted to Indian ports. Shipments from Saudi Arabia were anticipated to continue as they would be shipped through Red Sea ports, but that route was also under threat of Houthi attacks. In the past, India had been able to receive limited quantities of competitively-priced Group I base oils from Iran, but those volumes have dried up following the escalating tensions.

Offer prices have climbed because of skyrocketing feedstock costs, steeper freight rates and potential supply disruptions. Buyers were eager to secure volumes at present as they expected these disruptions to persist, but tanks were filling up, according to sources. Import prices for all Group I grades have moved up by $10/t-20/t on a CFR India basis.

Group II
Approximately 84% of the crude oil and condensate and 83% of the LNG that transited the Strait of Hormuz  in 2024 went to Asian refineries, with China, India, Japan and South Korea receiving the lion’s share, or approximately 69% of all Hormuz crude flows, according to Seatrade Maritime News. Given the supply disruptions created by the Iranian closure of the Strait, Asian producers were concerned about oil supply shortages and therefore suspended export spot offers, and limited volumes shipped to domestic buyers.

The sole Taiwanese Group II producer, Formosa Petrochemical, has also taken a step back from bulk offers, and was heard to be only entertaining term deals. Formosa announced a price increase for domestic list prices this week–the second round since the beginning of the month–lifting prices for the 70N by New Taiwan Dollars (NT$) 2.05/liter, its 150N by NT$2.05/l as well, and its 500N by $1.45/l with an effective date of March 9. (NT$1.00  = US$0.03)

Spot offers from South Korean producers have been paused as well. Hyundai Oilbank/Shell had already suspended spot offers the previous week as the producer was heard to be preparing 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 had ostensibly caused feedstock supply issues.

In China, there is growing uncertainty in terms of imports, as regional suppliers have suspended spot offers. Contract shipments from Taiwan, South Korea and other origins were expected to continue, but freight rates were climbing and the availability of vessels has been reduced given that many ships have been stuck in the Persian Gulf and vicinity.

Domestic producers in China have raised prices for all Group II grades on strengthening crude oil and feedstock prices and prospects of reduced import volumes.

In India, there were limited offers of Group II imports because several suppliers have suspended April offers. Light-grade shipments from the Middle East were thwarted following Iran’s closure of the Strait of Hormuz. Prices have notionally been adjusted up to reflect the challenging fundamentals and increased feedstock costs. Import indications of Group II cuts were heard to have climbed by $20/t-30/t on a CFR India basis, and continued to be exposed to upward pressure.

Group III
The Group III segment is the most affected by the repercussions of the U.S., Israel and Iran war because the Middle East is a significant producer of Group III base oils. Shipments out of Bahrain, Qatar and the United Arab Emirates have stalled due to the closure of the Strait of Hormuz along with the absence of vessels, since many are stranded in the Persian Gulf and Gulf of Oman, and others are staying away from the conflict area.

Additionally, production was expected to have been disrupted in at least a couple of refineries that produce Group III base oils, Bapco and Shell/Qatar Petroleum Pearl GTL, because of drone strikes at associated refineries, although operations at Bapco were said to be unaffected.

The sense of urgency to secure products was not as strong for Group III buyers because many are holding plentiful inventories and they were also hoping to be able to secure Group III cargoes from Asian producers. However, producers in Asia may face production disruptions due to reduced supplies of Middle East crude, and most producers rely on crude and feedstock supplies from that region.

In India, Group III indications have moved up following supply disruptions related to the conflict in the Middle East. Cargoes that were en route from the Middle East before the attacks intensified were anticipated to have safe passage to India, but there were concerns about future shipments out of the region. As a result, indications have moved up and remained exposed to upward price pressure, reflecting the steeper feedstock costs and strained availability. Prices on a CFR India basis were notionally adjusted up by $10/t-20/t, depending on the grade. The 4 cSt commanded higher adjustments because of tighter availability.

Spot prices on an FOB basis have been notionally adjusted up to show the current price trend in Asia, but with market changes happening very fast, values could lose validity very quickly.

Shipping

A number of the following inquiries had emerged before the start of the conflict between the U.S., Israel and Iran. Some shipments will be completed, while others may be cancelled or delayed, depending on vessel availability and routing.

• A 4,000-ton lot was expected to be shipped from Mailiao, Taiwan, to West Coast India/Persian Gulf in late March.
• A 4,000-ton was mentioned to for shipment from Taiwan to Pakistan between March 10-15.
• A 1,100-ton cargo was discussed for shipment from Onsan, South Korea, to Bangkok, Thailand, between March 29-April 10.
• A 1,600-ton cargo was on the table for shipment from Onsan to Taichung, Taiwan, between March 24-31.
• A 5,500-ton was quoted for lifting in Singapore to Karachi, Pakistan, between March 15-21.
• A 2,000-ton lot was mentioned for shipment from Daesan/Pyeongtaek to Hazira, India, in March

Production

Production rates at the base oil units of Bapco in Bahrain and Shell/Qatar Petroleum Pearl GTL in Qatar may have been impacted by Iranian strikes the previous week. Sources familiar with Bapco operations said that the plant had been unaffected by strikes at its neighboring refinery. There was no confirmation about the status of the Pearl GTL plant which receives feedstocks from Qatar Energy. The company suspended gas production on March 4 and declared force majeure.

The latest turnaround information for 2026 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 about a 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, 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
Brent futures vaulted over the $100 per barrel mark when trading opened on Sunday, and continued to climb on Monday as markets lost hope of a fast resolution to the U.S., Israel and Iran conflict. This “panic trading” was partly attributed to the fact that there is no clear path to reopening the Strait of Hormuz. Crude oil prices had not reached those levels since 2022, after Russia invaded Ukraine, according to NPR news.

• Brent May 2026 futures were trading at $114.20.bbl on March 9, 2026, sharply up from $79.49/bbl for front-month futures on March 2 (ICE Futures Europe).
• Dubai crude futures (Platts) for April 2026 settled at $86.96/bbl on March 6, 2026, up from $71.81/bbl for front-month futures on Feb. 27 (CME).

Base Oils
Spot base oil prices in Asia have increased due to skyrocketing feedstock and crude oil prices and tightening supplies. Prices have been notionally adjusted up to reflect current market conditions and sentiment in thin trading.

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 $30 at $830/t-$870/t
SN500 also up by $30/t at $890/t-$930/t
Bright stock prices edged up by $30/t to $1,310-$1,350/t 

Group II 150N adjusted up by $30/t to $880/t-$920/t
500N assessed up by $30/t at $930/t-$970/t

FOB Asia

Group I SN150 jumped by $40/t to $710/t-$750/t

SN500 moved up by $40/t to $730/t-$770/t

Bright stock prices assessed higher by $40/t at $1,120/t-$1,160/t

Group II 150N increased by $40/t to $770/t-$810/t

500N higher by $40 at $790/t-$830/t

Group III grades were assessed up, with the 4 cSt higher by $30/t at $1,130/t-$1,170/t
6 cSt up by $20/t at $1,090/t-$1,130/t
8 cSt higher by $20 at $930/t-$970/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.