Weekly EMEA Base Oil Price Report

No announcements have yet emanated from Saudi authorities, and it is anticipated that U.S. and Saudi forces will be in discussions as to action to be undertaken as a response.

Strangely, crude and product prices retreated following the weekend attacks, with dated deliveries of Brent crude hovering just above the $100 mark in early trading on Monday.

The Strait of Hormuz remains closed to most marine traffic, although there are reports this weekend of liquefied natural gas carriers from Qatar making supplies to Pakistan. This arrangement appears to have been negotiated with Iran, allowing safe passage for these vessels.

There are no suggestions that Group III base oil cargoes for Europe and U.S. would be permitted to make the transit, with shipowners and operators unwilling to allow masters to take vessels into or out of the gulf.

Added to the above would be inflated freight rates, high insurance costs, and potential demurrage for charterers, making this exercise unworkable for traders looking to recommence distribution activities in markets such as Europe and U.S., with supplies from Middle East Gulf sources in Qatar, the United Arab Emirates and Bahrain.

European, Middle Eastern and African base oil prices have been largely insulated from the latest recent moves in crude and feedstock levels, and are only responding to regionally specific factors, such as the Group III supplies being lost from Middle East Gulf sources. The rumor last week of a large parcel of Group III grades from the UAE making it out through Hormuz, appears to have been confirmed with destination USG, but a further cargo being loaded in Bahrain, but currently remaining within Middle East Gulf is still unsubstantiated.

News on the alternative conflict between Russia and Ukraine has been dominated by the sham election which took place across Russia over the weekend, with Putin unsurprisingly remaining in power, and his party perhaps represented even more strongly in the Duma.

With all/any anti-war parties removed from the ballot papers, and any real opposition either in prison, or worse, Putin appears to have received national support to continue his “special operation” in Ukraine.

However, Kyiv has responded to continuing Russian strikes, by unleashing four new ‘Flamingo’ missiles at Moscow, targeting a refinery and other infrastructure. Another wake up call for the Russian population, and perhaps even for the Kremlin?

Putin is expected to renew the ban on any petroleum products exports, with almost all Russian refineries suffering damage from Ukrainian drone and missile strikes over the past few months, causing huge shortages and rationing across Russia.

Russia awaits new edicts to come from the Kremlin, following electoral success, with some commentators fearing that Putin may invoke further conscription into the armed forces to replace losses on the Ukrainian front.

Directly, or indirectly both conflicts are helping to maintain energy prices at recent highs, which global markets advise cannot be prolonged without extensive, and perhaps permanent damage being inflicted on major economies.

One case for example, us that base oil prices have yet to yield much of the radical gains achieved following the start of the Iran war during March and April, and with crude and feedstock prices remaining elevated over the last few months, the proliferation of higher price levels looks set to continue.

Crude and Gas Oil Prices

Crude prices remain high in spite of an unpredicted softening following the weekend events. Trump has said that Iran does not want a deal, and the only avenue available to the U.S. now is to resume attacks on Tehran and the IRGC.

The markets have heard these type of comments previously, and consider that there may be little or no substance to Mr Trump’s random outbursts.

Crude and product prices remain volatile, however with large swings in both direction seen over the past few weeks. Crude prices are reactionary and reflect announcements and events emanating from the war in Iran. Brent crude values dropped $8 per barrel the past week, while European low-sulfur gas oil rates retreated.

Dated deliveries of Brent: $100.30/bbl, November front month
West Texas Intermediate: $95.45/bbl, October front month
Low-sulfur gas oil: $1,439 per metric ton, September front month

These prices were obtained from London ICE late Monday Sept. 21.

Europe

The European Group I market remains relatively tight, with a number of producers not being able to offer the full slate of grades. Often this is down to local problems in the refinery and is causing buyers to have to shop around more distant suppliers to be able to complete purchases.

There is another specter appearing on the horizon, with a number of European refiners being supplied from Saudi Aramco with Arab Light crude, there could be supply problems for crude cargoes driving into European refineries.

A Spanish refiner has already started the process of advising customers of a potential Force Majeure situation arising should the refinery not be able to receive cargoes of crude.

Apparently, early this week it was heard that the problem may have been overcome, at least temporarily, with one cargo to be supplied. The Saudi East/West pipeline will have to be repaired, allowing crude loading to take place from Yanbu.

Demand for Group I based oils has returned, although many players are offering comments which suggest that demand is lower than in past years. There has been a move to Group II lighter grades over the last few months, where Group I refiners have been maximising distillate output limiting availability of light solvent neutrals, but now API Group II light grades are all tightening with loss of production from a major unit in Rotterdam,

Producers are still prioritising diesel and jet fuel over base oils, with demand and prices for these fuels remaining high.

Buyers continue to seek lower prices, commenting that base oil levels vaulted to highs following the start of the Iran war, and that now prices should be trimmed.

The problem with this discourse is that feedstock remains highly priced, and diesel levels have been at their highest for the last few weeks, suggesting that the base oil premium to diesel if it were established at around $350/t, would mean that current prices are in the ballpark.

There are varying attitudes to pricing going forward, with some producers moving prices downwards a few weeks ago, with others waiting to see where prices will gravitate.

With many refiners diverting production into distillates, there is not a large “surplus” of Group I base stocks around Europe, with the market steadily moving tighter, with some sellers reporting limited quantities of light neutrals and the potential crude supply problem looming in the sidelines.

Cargoes from Saudi Arabia have been playing a new part in the Group I market, with Saudi producers unable to place large quantities of base oils into the Middle East Gulf markets, Europe is attractive with relatively higher prices than other possible export destinations. This ultimately depends on Yanbu receiving crude and products through the East/West pipeline.

Availabilities do not allow for any possibility of a European export market, and with Europe becoming a net importer, this pattern is established. Group I prices are unchanged this week.

Group I

European exports, FOB
No market

Northwestern Europe, FCA basis Antwerp-Rotterdam-Amsterdam
SN150: $1,945/t-$1,970/t
SN500: $2,050/t-$2,090/t
Bright stock 150: $2,325/t-$2,350/t

Eastern Europe, FCA
SN85: $1,910/t
SN150: $2,045/t
SN350: $1,955 /t
SN500: $2,100/t

Mediterranean, FCA Spain, Greece, Italy
SN150: $1,975/t
SN600/500: $2,085/t
Bright stock: $2,325/t

Pan-European, FOB/FCA
SN150: €1,800/t-€1,865/t
SN500/600: €2,005/t-€2,045/t
Bright stock 150: €2,215/t-€2,255/t

Pan-European prices are assessed on an aggregate basis using prices from Scandinavia, Poland, France, Germany, Benelux, Spain, Italy, Greece, the United Kingdom, and Baltic States.

The euro/U.S. dollar exchange rate is quoted at $1,14813 on Monday 21st September 2026.

European Group II markets are being affected by loss of production in Rotterdam. It was announced that following a large explosion at a nearby complex, damage had been caused to Group II base oil production. Group II base oils will not be available until November. The facility has gone into emergency repairs to solve the problem.

The lack of barrels from Rotterdam will tighten the market, although sources have confirmed that availability will be available from hubs previously supplied in U.K. and Spain. These supplies will not last for the duration of the outage.

Prices are unchanged, at levels established over the past few weeks, with levels around €2,175/t-€2,225/t for 100 neutral and 150N, with 600N between €2,210/t-€2,240/t.

Group II, FCA basis
110N: €2,175/t-€2,225/t
150N: €2,180- €2,230/t
220N: €2,095/t-€2,125/t
600N: €2,210/t-€2,240/t

Prices refer to a wide range of Group II base oils which may be sourced from within Europe, and also imported from U.S., Red Sea and Asia-Pacific.

The Group III market around Europe is in a state of flux, with some buyers who previously bought from distributors sourcing material from Middle East Gulf, now looking for options to purchase barrels from various sellers to fill the supply gaps.

Some have opted to move across to fully-approved grades, but are now paying higher prices for access to these grades, whilst some are trying to persuade re-refiners to grant larger quantities of material previously purchased.

Quantities of 4 centiStoke material had been shipped to the SK Northwestern European hub prior to the outage, ensuring that regular buyers will be allocated supplies of the 4 cSt grade during the next couple of months.

The Indian Group III cargo which was en route to Europe arrived at a port in Italy, but a further Indian Group III cargo which was destined for Antwerp-Rotterdam-Amsterdam appears to have been redirected to U.S. Gulf Coast.

A cargo from Indonesia arrived into Antwerp at the end of September, with another cargo due to arrive in Antwerp first half October.

Group III prices for partly approved material are maintained.

Prices for grades with partial slates of finished lubricant approvals are currently being priced almost on par with previous fully approved material.

With fully approved prices moving higher, it is anticipated that partly approved prices will follow over the next couple of weeks. Fully approved prices had sharp increases being applied particularly to 4 cSt material.

Group III

Partly approved, FCA Antwerp-Rotterdam-Amsterdam, Northwestern Europe
4 cSt: €3,125/t-€3,145
6 cSt : €3,125/t-€3,260/t
8 cSt: €3,255/t-€3,325/t

Fully approved, FCA Northwestern European
4 cSt: €3,585/t-€3,620/t
6 cSt: €3,565/t-€3,575/t
8 cSt: €3,555/t-€3,580/t

All the above products sold on a delivered basis will be subject to transportation charges, added to the prices above.

Rerefined Group III, FCA Germany
4 cSt: €3,325/t
5 cSt: €3,295/t
6 cSt: €3,325/t

Baltic Sea

The Russian elections are over, with a predictable outcome reflecting the crooked sham country this has become under the Kremlin rule of Vladimir Putin.

Putin will probably now extend the ban on petroleum product exports through October, and perhaps beyond, maintaining that refineries reproducing normally.

The sad truth is that following Ukraine’s relentless targeting of refineries, storage terminals and oil transportation Russia is experiencing vast shortages of fuels and lubricants with rationing and high prices applying to road fuels and lubricants.

There are shortages of base oils across the Russian domestic market with one report quoting price rises of 5% during September, prices having risen by 90% since January 2026.

It is not clear what the starting point was for these price increases, but suffice to say, that Russian prices will be now unaffordable for the ordinary Russian in the street.

Sources again confirmed that base oils from Gazprom are not currently available, and that supplies from Lukoil and Rosneft are on allocation and rationing.

With Ukraine’s now Flamingo missiles no refinery within Russia is safe, and it is predicted that with these new Ukrainian designed and produced missiles that Russian infrastructure is in for a design change!

Russia is trying to import fuels and base oils from neighboring ex-Soviet countries such as Kazakhstan and Uzbekistan, along with imports from North Korea, but reports are that traders involved with this process are being hit with high prices in U.S. dollars.

Black Sea & Turkey

Since Russia curbed base oil exports in favor of the domestic market in that country, and since the Iran conflict then stopped supplies of Group I base oils being trucked into Turkey from Sepahan and Iranol in Iran, buyers in Turkey have been struggling to find suitable replacement volumes.

Options have included North Africa, with Egyptian producers in Alexandria supplying regular quantities into Gebze and Derince. Motor Oil Hellas in Greece has not been able to supply of late, but some SN500 material, believed to be off-spec, could be available at prices below $1,400/t, but this parcel may be headed to Nigeria through a trader.

Turkish buyers were also relying on imports from Turkmenistan and Uzbekistan barrels, but news last week suggested that no Uzbek barrels were available for Turkey, perhaps having been directed to Russia.

Domestic values for Group I oils from the Tupras refinery at Izmir are again unchanged.

Group I, FCA Izmir
Spindle oil: Tl 80,006/t, plus VAT Tl 18,030.50/t
SN150: Tl 78,825.00/t, plus VAT Tl 17,794.30/t
SN500: Tl 80,560.00/t, plus VAT Tl 18,141.30/t
Bright stock: Tl 96,914.00/t, plus VAT Tl 21,412.10/t

Sales incur a standard loading charge of Tl 10,146.50/t added to the prices above.

The sale tender of Group III and Group II base oils from GS Caltex in South Korea has attracted attention of two Turkish buyers with an inquiry to deliver to Gebze.

Traders and blenders have notified this report that there are no offers to resell imported Group II oils.

Fully approved Group III from Cartagena, Spain, is no longer being supplied to receivers in Gemlik, but if the GS Caltex tender is successful, Group III base oils will be available for local blending.

Middle East

A downturn in the number of base oil cargoes loaded out of Yanbu has been apparent over the past two months since the Houthi surge in Yemen and the dictate that the Bab-al-Mandeb Strait in the southern Red Sea was closed to Saudi-flagged vessels. Saudi-flagged vessels now risk being attacked and sunk if they attempt to pass through the strait.

After the strike on Riyadh airport last Sunday, the conflict between the Houthis and Saudi forces seems likely to escalate back toward all-out war.

It is believed that U.S. forces may also be involved, and a news source in Washington suggested Monday evening that the countries were considering coordinated attacks on bases and command posts throughout Yemen.

Houthis claimed to have taken over two islands in the strait that allow strikes on vessels deemed hostile to the rebels.

Few base oil cargoes have passed through the strait, but those that sailed under India flags, which would have been permitted safe passage.

Vessels have been loaded from Yanbu for receivers in Europe, sailing through Suez where safe passage is guaranteed, but these cargoes are dependent on the Saudi East-West pipeline resuming operations supply crude oil to Luberef’s Yanbu refinery.

News reports in the U.S. Monday said Trump appears to have lost patience with Iran and was considering strikes against principal targets in that country, with some assistance from Gulf allies. It is thought that the United Arab Emirates, Saudi Arabia and Qatar could be among countries enlisted for that initiative.

There was no evidence of progress from diplomacy. Tehran reportedly send a missive to Washington including all acceptable terms for a ceasefire, but U.S. sources reportedly said the terms were repeats of earlier demands that were turned down. These reportedly included restoration of all Iranian infrastructure damaged during the conflict, Iranian sovereignty over the Strait of Hormuz and the release of billions of dollars in frozen Iranian funds.

Hormuz remains closed to most traffic; LNG carriers are the only vessels reported to have been granted passage by the Islamic Revolutionary Guard Corps. The blockade of Iranian ports continues. The nation’s economy continues to worsen as now runs around 300% and funds from oil exports have ground to a halt.

Base oils are finding a way out of Iran to nearby Iraq, but with the UAE cutting all economic and trading links with Iran, only some Indian vessels are trying to load base oils in ports such as Bander Abbas, where the U.S. blockade is ineffectual.

Group I and II supplies in the UAE are now exhausted. Some material is being delivered by truck from Fujairah, but all available base oils are being used to service local requirements for municipal and government customers such as military and police.

There is some talk of trying to export through Omani ports such as Sohar, but pipelines carrying crude and products cannot easily handle relatively small quantities of base oils, hence there are logistical and transportation elements that may not work for base oils.

Because base oils are only being supplied into the Middle East Gulf on an ad hoc basis, reporting of UAE prices is suspended until sea-going vessels are again permitted to discharge cargoes into western UAE ports.

One vessel carrying a large cargo of up to 40,000 tons of Group III base oils from Adnoc managed to transit Hormuz and made an STS transfer of the cargo to another ship. The cargo is now en route to the U.S. Gulf of Mexico coast.

Another vessel is suggested to have loaded out of Bapco’s Sitra terminal in Bahrain, but that vessel has not yet sailed from that port.

Reporting of prices for Group III base oils distributed in the UAE are also suspended, as are netbacks for Group III base oils ex Al Ruwais, Sitra and Ras Laffan.

A vessel did load at Ras Laffan then anchored at Al Jubail port in Saudi Arabia, waiting to transit Hormuz under the terms of an MOU between Iran and the U.S., but the agreement expired after two days. The vessel successfully sailed to Hong Kong and Singapore.

Africa

Small cargoes of 2,000-3,000 tons of Group I base oils are loading from Alexandria for receivers in Derince and Gebze, on vessels chartered by Turkish traders and sailing under Turkey’s flag.

Another large Group II parcel that loaded out of the U.S. Gulf Coast during mid-July has discharged in Durban, South Africa. It then proceeded to Mumbai anchorage to discharge the balance of its cargo.

A large base oil cargo loaded out of Rotterdam and Fawley, United Kingdom, at the end of June and will be supplying distributors and affiliated companies in South Africa. The vessel discharged part of its cargo in Durban and the balance in Mombasa, Tanzania.

A Group I cargo of three grades is en route to West Africa to service contracted buyers in Ghana. It is not known whether the cargo also includes grades for receivers in Guinea and Cote d’Ivoire. This cargo has once again been mistakenly reported elsewhere as moving into Nigeria.

Nigerian buyers have an offer for an Indian cargo, but this cargo appears to have been declined, perhaps due to quality and specification issues since the cargo is believed to have been made up of Iranian and Russian grades that will have been in storage in India for some months, or longer.

A trader may be offering some Greek material at extremely low numbers, which again would suggest some kind of quality problems with the parcel of SN500.

There are rumors of other cargoes being dumped into Apapa but no tangible proof of these transactions available as yet. Conditions are being required by some traders, who are demanding coverage for a cargo quantity under a letter of credit.

Buyers in Nigeria are beginning to get short on material now and may be considering options to be able to continue supplying blenders and resellers around Nigeria.

The official exchange rate for Nigeria’s naira was was NGN 1,332 Monday while the black market rate was NGN 1,385-1,392.

The last cargoes to arrive into Apapa sold at prices valid prior to the Iranian war.

Group I, FCA Apapa
SN150: $885/t
SN500: $925/t
SN900: $1,035/t

Ray Masson is director of Pumacrown Ltd., a trader and broker of petroleum products in London, U.K. Contact him directly at pumacrown@email.com.

Lubes’n’Greases shall not be liable for commercial decisions based on the contents of this report.

Historic and current base oil pricing data are available for purchase in Excel format.