Weekly Asia Base Oil Price Report

With the Strait of Hormuz effectively closed to all traffic, vessels are unable to transport crude oil and base oils to other regions. Several Middle East base oil plants have been shut down due to damage from Iranian drone attacks, significantly reducing exports from the region, particularly those of API Group III base oils. A number of Middle East base oil producers have been forced to halt production and declare force majeure. The Shell/Qatar Petroleum Pearl gas-to-liquids plant and the Bapco plant in Bahrain were both reported to have suffered production disruptions following drone attacks.

According to reports, Shell has halted production at its Pearl GTL facility in Qatar after sustaining damage during aerial attacks on March 19. The unit experienced a fire at one of its processing trains and production has been shut down, with sources expecting the Pearl plant to remain offline for an extended period. Earlier Iranian attacks on Qatar Energy’s LNG refinery in Ras Laffan, which supplies feedstocks to the Pearl unit, caused damages that will put the facilities out of commission for several years, with the company expected to declare force majeure on LNG contracts for up to five years, Reuters reported.

In Abu Dhabi, state oil giant Adnoc has shut part of its Ruwais refinery complex in response to ‌a fire that broke out on March 10, following a drone strike. Sources indicated that while the Ruwais West refinery was shut down for inspection and safety reasons, other operations, including the Ruwais East unit and base oils plant within the massive complex might be continuing at reduced capacity. The Ruwais complex houses a 600,000 metric-tons-per-year Group II and Group III plant. There was no producer confirmation about the plant’s status.

Over the weekend, crude oil futures hovered near their highest levels since 2022 because U.S. negotiations with Iran failed to ease supply concerns as there appeared to be little progress. The Strait of Hormuz remained effectively closed to traffic, even though Iran had said that it would allow authorized vessels through. Two Chinese container vessels allegedly tried to pass through the Strait of Hormuz, but were turned back.

Downstream, lubricant manufacturers hoped to attain price increases for finished products as the cost of feedstocks, raw materials, additives and freight rates have jumped. Some were trimming operating rates because they were unable to source sufficient feedstocks to keep running at top rates.

Group I and Group II

Several refiners in Asia have cut production rates, as many rely on Middle East crude oil to run their refining operations, and crude oil shipments from that region have been curtailed. While some countries are releasing strategic oil reserves to allow for uninterrupted fuel production, others are facing fuel supply challenges, with some nations seeing gasoline, diesel/gasoil, and jet fuel shortages. Some countries, such as Vietnam and the Philippines, were seeking assistance from countries with heftier emergency oil inventories such as Japan. Refiners were asked to increase fuel output to ensure supply for the general population, which has led to production curtailments of other refined products such as base oils.

While the U.S. has temporarily halted sanctions on Russian and Iranian crude exports, offering some relief to Asian refiners, most were still hesitant to purchase Russian crude because of European sanctions. Indian refiners had been purchasing Russian crude at discounted prices until late last year, but had largely stopped following a trade deal between the U.S. and India. However, they have returned to Russian oil purchases, which has allowed them to offer a steady supply of refined products, including base oils.

A majority of base oil suppliers were trying to meet contractual obligations and have suspended spot offers. Only a handful of producers were heard to be offering spot supplies, but at extremely elevated levels, with few transactions being concluded.

Some suppliers were still assessing their supply positions for April. A number of them may cut back quantities further, and in the worse-case scenario, they may not be able to supply any base oils at all.

Base oil availability in Asia was therefore expected to remain limited, while supplies from most Middle Eastern origins were unable to reach Asia because of the closure of the Strait of Hormuz and the shutdown of several base oil plants. All of these factors have created the perfect storm for base oils, leading to weekly three-digit spot price increases for most grades.

Buyers were aware of the situation and while many were still manufacturing lubricants using existing base oil inventories, others have depleted stocks but resisted the current base stock prices as they thought price hikes would be difficult to recoup.

Upcoming scheduled turnarounds may exacerbate the supply conditions. South Korean producer Hyundai Oilbank/Shell was expected to start a planned maintenance program at the end of March that was anticipated to last until early May. The key Group II supplier exports significant amounts to countries such as China and India and  had already restricted spot offers before the start of the conflict as it was preparing inventories ahead of its turnaround. The producer had also trimmed run rates as it had suffered an unexpected production setback at its refinery in February.

In Indonesia, Pertamina has scheduled a turnaround at its Group I unit in Cilacap starting in April 2026.

Indonesian and Thai suppliers were heard to have withdrawn Group I spot offers but tried to continue meeting contract commitments, although significant restrictions on volumes were inevitable. Within the Group I segment, Southeast Asia continues to be the main source of base oil cargoes for Asian lubricant operations, and the absence of fresh offers drove prices up significantly.

In the Group II segment, the steady rise in oil prices drove the sole Taiwanese Group II  to adjust domestic list prices for a fifth time this month. Formosa Petrochemical was heard to have increased prices of its 70N and 150N grades by New Taiwan Dollars (NT$) 4.75/liter, and the 500N by NT$4.96/l, with an effective date of March 28. (NT$1.00 = US$0.03)

One phenomenon that is taking place given the extremely high offer prices from most origins is that Chinese domestic producers have started to offer export cargoes at competitive prices. China does not typically export many base oil cargoes as producers need to prioritize domestic requirements.

Import volumes were scant in China, and prices have moved up by $100-200 per metric ton on a delivered basis from the previous week, but even at the steeper prices, volumes were not easy to obtain. Most buyers have turned to domestic supplies whenever possible, but faced substantially higher domestic posted prices.

In India, import prices have also surged, with increases in the realm of $100-150/ton mentioned for Group I and Group II grades on a CFR India basis. However, traders seemed unable to locate sizable regional cargoes as Asian suppliers were focusing on fulfilling domestic contract requirements.

Domestic base oil volumes in India have seen some restrictions because of the curtailed production rates at some refineries. However, in contrast to most Asian producers, Indian refiners have the advantage of being able to use Russian crude oil as the U.S. has granted a temporary suspension of sanctions to help ease the Middle East crude oil supply shortages. This advantage has allowed domestic producers to keep base oil prices from surging to the same degree as imports, and domestic price levels were therefore deemed more competitive than imports.

Many Indian base oil consumers were managing inventory levels carefully and some expected to have enough inventories to meet blending requirements for one or two months, but realized replenishment cargoes may challenging to locate. To offset the rising base oil, additive and transportation costs, and given reduced output from some manufacturers, lubricant suppliers were seeking price increases, but consumers were expected to resist the higher values.

Asian Group I and Group II price assessmentshave been notionally adjusted up to reflect the sharp jump in crude oil and feedstock prices and the very limited spot availability. A very small number of buyers have accepted steeper offers, but many preferred to wait for an end to the war and the reopening of the Strait. But even if buyers were willing to pay the significantly higher prices, some suppliers withdrew offers altogether because they could not ensure that they would have sufficient feedstocks to produce base oils in the coming weeks.

Group III

The Group III segment was set apart from the other two categories as current market dynamics have more directly affected base oil supplies and pricing. The Middle East is still one of the main sources of Group III base oils, with cargoes routinely moving within the region, Asia, the U.S. and Europe. The strike on the Adnoc plant, combined with attacks on refineries in Bahrain (Bapco) and Qatar (Shell Pearl GTL), have taken roughly 20% of the world’s Group III base oil supply offline.

Furthermore, 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 – were posing significant logistics and transportation challenges.

Asian Group III producers mostly rely on Middle East crude oil to run their refineries, and reduced oil production in the region, coupled with the closure of the Strait, have resulted in more limited volumes of crude oil moving to Asia. However, at least one  Southeast Asian Group III producer was heard to be able to offer a steady supply of base oils because it benefits from regional crude oil supplies to run its operations and has been able to continue supplying contract customers.

A few base oil cargoes from the UAE and Qatar that had been on the water when the conflict started were immobilized in the Persian Gulf. This has driven import prices up in places like China, since supplies from other origins such as South Korea have tightened as well, and it was uncertain when Middle East shipments would return to normal.

Import prices for Group III grades on a delivered basis were understood to have climbed in China by approximately $200/t from a week ago. This also offered support to higher domestic Group III prices, with local producers lifting their offers as feedstock costs have also increased significantly.

In India, import prices have notionally increased by $150/ton on a CFR India basis from a week ago because of steeper offers and limited supplies, although there were few actual spot transactions taking place. The Indian market does not utilize as many volumes of Group III base oils as other markets, but the tightening global supplies of Group III grades were expected to continue exerting pressure on import prices. Domestic capacity is still comparatively limited and not sufficient to meet local requirements.

Group III spot prices on an FOB Asia basis have been notionally adjusted up to show the current price trend in Asia, but market conditions were continuously changing, with values being adjusted accordingly.

Shipping

Details of recent shipments emerged, with a 6,500-metric ton cargo heard to have been shipped from Daesan, South Korea, to India at the end of February on the Maple Ocean.

• A 2,000-ton lot was mentioned for prompt shipment from Pyongtaek, South Korea, to Hazira, India.
• Approximately 3,500 tons were discussed for loading in two shipments from Yeosu, South Korea, to Yokohama, Japan April 1-10.
• A 1,000-ton parcel was on the table for shipment from Yeosu, South Korea, to Merak, Indonesia, April 12-20.
• A 4,000-ton cargo was mentioned for shipment from Ras Laffan, Qatar, to Al Jubail, Saudi Arabia, March 21-30.
• A 4,000-ton lot was expected to be shipped from Mailiao, Taiwan, to West Coast India/Persian Gulf late March.
• A 6,000-ton parcel was quoted for shipment from Ruwais, United Arab Emirates, to Mumbai, India, first half April.
• A 4,000 to 5,000-ton cargo was quoted for shipment from Daesan/Pyongtaek, South Korea, to Hamriyah, United Arab Emirates, first half April.
• A 2,000-ton lot was discussed for shipment from Sri Racha, Thailand, to India first half April.
• A 1,100-ton cargo was discussed for shipment from Onsan, South Korea, to Bangkok, Thailand, March 29-April 10.

Production

Production at the base oil units of Bapco in Bahrain, Shell/Qatar Petroleum Pearl GTL in Qatar and Adnoc in Ruwais, Abu Dhabi, appeared to have been impacted by Iranian drone strikes.

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 several years, and has declared force majeure on LNG shipments, according to the company’s website. 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 as the unit utilizes natural gas from the refinery to produce Group III base oils. The plant has a nameplate capacity of 1.37 million tons of Group II/Group 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 400,00 t/y 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, but some reports indicated that production had stopped. An official report was not available by the publishing deadline.

The latest plant 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

• Pertamina will start a one-month turnaround at its Group I plant in Cilacap, Indonesia, in April.
• Eneos’ plant in Kainan, Japan, suffered an unplanned shutdown in February 2026. The company’s Mizushima A plant underwent maintenance from October until 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 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 Group I production capacity of 275,000 t/y. With the completion of the Growth II Project in Yanbu, Luberef’s total production capacity will reach 1.53 million t/y, making it the only supplier in the region able to offer Group I, II and 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, shut for 45 days from mid-July until the second half of August 2025.
• PetroChina’s Dalian refinery permanently shutdown in July 2025 with inventory clearance by end-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 45 days. The plan had run at reduced rates for several days in February due to a technical problem.
• GS Caltex had a partial shutdown at its Group II plant in Yeosu, South Korea, mid-March.
• CNOOC has scheduled a turnaround at its Taizhou, China, plant in Q2 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 Q4 2025 to Q3 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 Oct 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, late July 2025.

Prices

Crude Oil
Crude oil futures climbed on Monday as the conflict showed little sign of ending and Trump reportedly considered taking control of Iranian oil, while Yemen’s Iran-backed Houthis fired missiles at Israel.

• Brent May 2026 futures were trading at $115.29/bbl on March 30, up from $113.13/bbl for front-month futures on March 23 (ICE Futures Europe).
• Dubai crude futures (Platts) for April 2026 settled at $109.81/bbl on March 27, 2026, down from $112.83/bbl for front-month futures on March 20 (CME).

Base Oils
Spot base oil prices in Asia surged due to sharply higher feedstock and crude oil prices and tightening supplies. Prices have been notionally adjusted up to reflect current market conditions and sentiment, but trading remained muted.

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 assessed higher by $100/t at $1,320/t-$1,360/t
SN500 was also up by $100/t at $1,380/t-$1,420/t
Bright stock prices were assessed up by $50/t at $1,650-$1,690/t

Group II 150N was adjusted up by $100/t to $1,400/t-$1,440/t
500N was assessed up by $100/t at $1,420/t-$1,470/t, all ex-tank Singapore.

FOB Asia
Group I SN150 jumped by $200/t to $1,310/t-$1,350/t
SN500 was up by $220/t to $1,320/t-$1,360t
Bright stock prices were assessed higher by $100/t at $1,600/t-$1,640/t

Group II 150N assessments increased by $200/t to $1,370/t-$1,410/t
500N was higher by $200/t at $1,380/t-$1,420/t

Group III grades were also assessed up
4 cSt higher by $200/t at $1,490/t-$1,530/t
6 cSt was up by $200/t at $1,470/t-$1,510/t
8 cSt was assessed up by $220/t at $1,360/t-$1,400/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.