The reason many companies maintain the use of Group I base oils is down to the price differentials between those base oils and Group II. There can be a delta of some $300 per metric ton between oils of the same viscosity, but of course, Group II brings additional benefits in terms of oxidation stability, higher saturates, and lower sulphur levels.

Group II base oils being hydrotreated, rather than solvent refined, bridge the gap between Group I and synthetic base stocks allowing blenders to arrive at the parameters necessary to produce the latest generation of engine and industrial oils for example.

Group III adds yet another dimension to the slate being severely hydrocracked, and processed using isomerisation, producing superior purity (low sulphur, high saturates), excellent oxidation stability, and a high viscosity index (VI > 120), making them ideal for high-performance automotive and industrial lubricants whilst meeting strict emission standards. 

However, there still exists a place for all three types of base oils, although across the European, Middle Eastern and African regions there is a noticeable and increasing move to premium base oils. This is becoming obvious in regions which have traditionally relied solely on Group I base stocks, such as in some Middle East Gulf and African markets where the move to premium grades of base oil are becoming most evident.

With greater global availability for blenders to access premium base stocks, the progressive move will continue until Group I production becomes economically unviable, whence this base oil type will largely disappear from the market. This may take many years however, with a large number of third world countries still highly dependent on this type of base oil.

Base oil prices globally are forecast to weaken during 2026, due in the main to an abundance of available products, leading in some regions to surplus material looking for a home. Export markets are set to buzz, with producers and traders looking at all opportunities for open arbitrages to move cargoes into regions where demand may exist for various types of base stocks.

Presently, price pressures are being exerted on base oils other than Group III, where demand is extremely positive with buyers looking to procure extra quantities of these base stocks where ever possible. In markets served in the main by imported material, as soon as cargoes arrive, the quantities contained therein become allocated to existing or contracted customers, who will purchase on a forward basis, awaiting the next replenishment, when the exercise will be repeated.

Group III buyers tend to remain loyal to their suppliers, fearing that if spot purchases are considered then shoulda dearth of product occur, then they could be left high and dry without access to requirements.

This makes the Group III scene a sellers’ market, where although there exists a possibility for sellers to take advantage of this situation, with ever higher prices, this is not happening, with business and trade being conducted on an ‘honourable’ basis.

One part of the Group III market is seeing weaker price levels, this being the ‘fully-approved’ sector where supplies have maintained higher prices, and are now finding that a wide differential versus partly or non approved product is unsustainable and because of wide variations in prices, pressure is being heaped on suppliers of fully-approved grade to modify selling levels.

Market share is being eroded for fully-approved suppliers, where blenders are able to utilise a combination of fully-approved and partly-approved API Group III base oils. This two tier approach has been born out of necessity due to the large variation in prices. At one point the differential stood in excess of $600/t, this has significantly contracted over the last year, and now stands at around $300/t, with partly-approved prices edging upwards, whilst at the same time, fully-approved prices have fallen, and may weaken further, narrowing the price gap between the approvals.

Crude and Gas Oil Prices

Behind the front line of base oil prices, fundamentals remain stable and steady, with crude oil prices hovering around similar levels since the start of November last year. Feedstock levels have also remained in a narrow range over the same period, ending a stability to base oil production not seen for some time previously.

Geopolitical developments are always around the corner and on the periphery of hydrocarbon industries, with base oil, whilst being a small part of the whole, playing an important part in total barrel economics. Low-sulfur gas oil prices have flatlined for the past month.

Crude and gas oil prices
Dated deliveries of Brent crude: $63.45/bbl, March front month
West Texas Intermediate: $59.05/bbl, February front month
European low-sulfur gas oil: $621.00/t, January front month

Source: London ICE late, Jan. 12

Europe

Back to normal for base oil business, although sources and contacts around Europe have almost all voiced a boost for purchasing new quantities of Group I base oils, even against a backdrop of an undercurrent to move to Group II. Companies across Europe are looking to build, consolidate and even expand trade in existing and new markets. This requires new purchases of base oils to put the blending lines into action.

The start of the year around Europe has seen adverse weather conditions, restricting the movement of base oils and additives from production hubs in the main markets.

Snowfalls have caused havoc for transportation with trucks and trains experiencing blocked roads and rail lines. Horrendous conditions were brought by a ‘super storm’ in the form of  ‘Goretti’ with winds recorded at excess of 150kph across northern France and parts of the the United Kingdom.

Barges had their fair share of problems in Europe, with low canal water levels limiting the loading of large quantities of base oils into barges. This situation is due to be reversed in the coming weeks, when large snow melts will flood canals, and may raise water levels to such an extent that barges will be unable to pass beneath bridges.

Group I prices remain under pressure with large quantities of inventory having built over the holiday period at refinery storage points. Lower prices are emerging but it will probably take a couple of weeks to see where prices eventually settle. Suppliers have updated availabilities and price offers for January, February and March.

Bright stock remains tight, but prices are indicated lower by around $25/t-$40/t. Bright stock maintains a healthy premium over solvent neutral prices. Otherwise Group I prices in Europe are unchanged this week.

Group I

Exports from Europe, FOB
SN150: $625/t-$660/t
SN500: $695/t-$720/t
Bright stock 150: $1,100/t-$1,125/t

Northwestern Europe, FCA basis Antwerp-Rotterdam-Amsterdam
SN150: $775/t-$800/t
SN500: $855/t-$890/t
Bright stock 150: $1,225/t-$1,255/t

Eastern Europe,  FCA
SN150 : €764/t
SN500 : €820/t
Bright stock: €1,126/t

Mediterranean prices, FCA  (updated from “optimistic” Spanish supplier)
SN150: $815/t
SN600: $925/t
Bright stock: $1,310/t

Pan-European, FOB/FCA
SN150: €620/t-€665/t
SN500/600: €695/t-€740/t
Bright stock 150: €1,050/t-€1,075/t

Pan-European prices are assessed on an aggregate basis from levels in Scandinavia, Poland, France, Germany, Benelux, Spain, Italy, Greece and U.K.

The euro exchange rate with the U.S. dollar was at $1.16697 Monday.

Group II base oil prices remain around the ‘new’ levels established just prior to Christmas. The levels became almost ‘established’ following the issuance of lower prices from one of the main suppliers. Levels are at $1025/t in respect of the 150N grade and $1200/t for the heavier 600N.

The EU duty element of 3.7% for non FTA imported Group II base stocks will be removed in another two weeks from now, w.e.f. 28th January 2026.

A major producer based in Europe loaded a large cargo of Group II grades during December, which was bound for Singapore. It is interesting to see what this cargo was supplied to an affiliate in that region, following the completion of new Group II production at Jurong refinery. There will have been good reason for this cargo, perhaps only loading one or two grades.

Demand appears positive as January unfolds and appears to be picking up faster than anticipated during the month. Buyers had run down inventories going prior to the holiday period, and are currently looking to replenish stocks ahead of the Spring oil change season.

This will also be a time when industrial and commercial activity starts to motor, and may precede a period of much need growth across the major European economies.

Group II, FCA basis
110N: €800/t-€820pmt
150N: €810- €825/t
220N: €835/t-€845/t
600N: €965/t-€1,020/t

Prices apply to a wide range of Group II base oils that can be sourced from within Europe, U.S., Red Sea and Asia-Pacific. Ranges refer to bulk shipments.

Group III base oils show good demand, particularly for the 4 centiStoke grade. New cargoes have been arriving from Middle East Gulf and AsiaPac during the holiday period, with stocks available for sale and delivery.

A cargo of Group III grades has loaded from Indonesia with destination notified as Antwerp-Rotterdam-Amsterdam. This will be the first such cargo reaching the European market, and may be under the auspices of a European trader. It would be rather unlikely for the supplier, Pertamina, to become involved in the European arena on a direct basis.

Cargoes from Petronas in Malaysia do form part of the European Group III slate, but Indonesian material tends to be exported into China and other AsiaPac markets. The economics of the cargo are interesting, with high freight costs, should the cargo make the deviation around the Cape of Good Hope in South Africa, rather than risk the Red Sea transit with the Houthis in Yemen still actively targeting merchant shipping in the Bab-al-Mandeb Strait.

European Group III prices remain unchanged with buyers not adopting negative attitudes to entertaining slightly higher prices moving into February and March.

When barrels of Group III base oils start flowing from new sources in U.S. Gulf Coast and should these new sellers have full approvals, then it will be interesting to see where prices will be pitched relative to existing prices for fully-approved products.

Group III prices, both for grades with partial and full slates of finished lubricant approvals, are unchanged again this week. in respect of partly-approved material, FCA remain unchanged this week. Sales of partially approved grades seem to have been gaining share of the Group III segment, which may motivate the lone current supplier of fully approved grades to halt the drift.

Group III

Partially approved, FCA Antwerp-Rotterdam-Amsterdam and Northwestern Europe
4 cSt: €1,165/t-€1,190/t
6 cSt: €1,135/t-€1,155/t
8 cSt: €1,125/t-€1,145/t

Fully approved, FCA Northwestern Europe
4 cSt: €1,610/t-€1,625/t
6 cSt: €1,595/t-€1,620/t
8 cSt: €1,585/t-€1,610/t

All Group III products sold on a delivered basis are subject to additional transportation charges.

Rerefined, FCA Germany
4 cSt:  €990/t
5 cSt: €990/t
6 cSt: €1050/t

Baltic Sea

The previously mentioned spurious report of a base oils cargo being loaded or about to be loaded out of St. Petersburg appears to be false. No vessel has been listed on any shipping reports, and with no cargoes moving out of Russia for export destinations the information seems to be untrue.

Available supplies of Russian base oils still are being utilized in the domestic market, following significant damage to production and storage facilities at a number of refineries around Russia.

The “phantom” Nigerian-bound cargo discussed here previously is not of Russian origin. The trader involved has a long history of taking Russian barrels through various ports and delivering into Apapa port in Lagos, but on this occasion no Russian barrels were available, and the cargo was sourced from the U.S. Gulf of Mexico Coast.

Group I

Exports, FOB St. Petersburg, Vyborg (notional as exports still seem unlikely)
SN150: $625/t-$655/t
SN500: $660/t-$685/t

Black Sea & Turkey

No Russian base oil cargoes have been discharged in Turkey. Traders who were involved with Russian base oils in the past have no availabilities currently offered. Historical Rosneft or Lukoil prices for the Turkish market will no longer be posted in this report since these numbers as no longer valid and are meaningless.

Prices in Turkey for Group I oils from local refiner Tupras appear unchanged this week.

Group I

Tupras
Spindle oil: Tl 32,090.00/t plus VAT Tl 8,315.44/t
SN150: Tl 27,764.00/t plus VAT Tl 7,450.24/t
SN500: Tl 34,443.00/t plus VAT Tl 8,786.04/t
Bright stock: Tl 51,258.00/t plus VAT Tl 12,149.04/t

Sales incur a standard loading charge of Tl 9,487.20/t.

Group II, ex-works through Turkish traders :
110N and 220N, no current availabilities
350N : no offers
150N, ex Taiwan or Saudi Arabia: $955/t
500N/600N, ex Taiwan or Saudi Arabia: $1,175/t

Group III

Partly approved
Tatneft 4 cSt, FCA: €933/t (availability in doubt)

Fully approved, from Cartagena, Spain, CIF Gemlik
€1,655/t-€1,680/t

Middle East

Employees at Saudi Aramco’s wholly owned Yanbu‘ Refinery completed a wide-ranging and complex Total Refinery Shutdown on schedule and without any safety incidents.

The scope of the TRS covered 320 pieces of equipment, 1,000 maintenance work orders and more than 30 projects. The refinery undergoes extensive maintenance every five years to ensure the safety, integrity and reliability of the facility. However, the TRS that ended March 10 2025 was more extensive than previous turnarounds.

Despite adverse weather and other issues, the shutdown was completed within the scheduled 38 days, due largely to advanced planning, organization and solid teamwork. Nearly 3,000 Saudi Aramco employees and contractors worked together to complete the task safely and on time.

The turnaround is partly preparatory work for the introduction of  production for Group III base oils.

Cargoes of around 18,000 tons-20,000 tons continued to load out of Yanbu and Jeddah for receivers in Mumbai anchorage and JNPT, during the turnaround with additional smaller cargoes of around 8,000 tons-10,000 tons moving Group I and Group II to receivers in United Arab Emirates and Pakistan.

Elsewhere cargoes are being targeted at receivers in Singapore and Durban. 3,000 tons of bright stock will load during January for Alexandria in Egypt, supplying under the EGPC contract. Parcels for receivers in Aqaba and Port Sudan are planned this month or early February.

Group I and Group II base oil cargoes have arrived in U.A.E. from U.S., Korea, Thailand and Indonesia. Parcels are discharging into Fujairah and Hamriyah.

The region is again on tenterhooks regarding the latest civil strife in Iran, with  roads of protesters taking to the streets. Reports Monday indicated that more than 500 civilians have been killed so far during the protests.

Comments are being received from sources in U.A.E. regarding the civil unrest, but these reports cannot relay factual information since there is a communications blackout across Iran with no internet or telephone connections

Protests started with the collapse of the rial (the Iranian currency) against the dollar, and also the swingeing inflation rate which is put at around 40%. The protests are now directed against the theocracy and the ruler Ayatollah Ali Khamenei.

The IRGC has adopted firm tactics against the population, with executions and mass shootings commonplace.

The West (U.S.) is evaluating the situation, with Trump’s administration poised to intercede should this be necessary to protect citizens from barbaric treatment and shootings.

Whilst this action is not directly related to base oil trade, suffice to say that no imports of base oil will be flowing into Iran at this time, with vessel owners refusing to charter vessels to traders who had planned cargoes of Group II and Group III base oils to be delivered into Iranian receivers.

Iranian Group I base oil news was not forthcoming or available last week, so it is unclear if business continues, or if all trade has been interrupted by the unrest. This report considers the latter to be the case.

Russian cargoes are no longer arriving into U.A.E., with no vessels sailing from Limas terminal in Turkey or from the Baltic.  Local Turkish reports are that Limas terminal has been closed.

Imported base oil prices into U.A.E. are maintained for most grades but with some small adjustments to some of the Group I grades.

Group I, CIF/CFR UAE ports
SN150: $870/t-$895/t
SN500: $920/t-$940/t

Group I cargoes are being sold by traders based in the U.S. and also traders based in Geneva, Switzerland, and also directly from producers in Thailand.

Group II base oils FCA, or on an RTW delivered basis U.A.E. and Oman, have prices maintained. 

Group II, FCA or RTW UAE and Oman
110N, 150N and 220N: $1,255/t-$1,300/t
600N: $1,365/t-$1,395/t

The high ends of the ranges refer to material being delivered by RTW in U.A.E. and into Oman, north of Khorfakkan and Fujairah

Group II base oils are being imported into UAE and other Middle East Gulf ports in Qatr and Bahrain from a number of  sources, such as Red Sea, U.S., South Korea and Singapore, and are being resold FCA U.A.E. or on a truck delivered basis.

Group III, FCA Hamriyah/Sharjah port, or delivery by RTW in UAE and Oman, have prices raised slightly on the back of higher numbers from refiners in both Al Ruwais and Sitra, who both seem to increase prices at the same time?

4 cSt: $1,240/t
6 cSt: $1,250/t
8 cSt: $1,265/t

The ranges of Group III prices above include a reseller’s margin of $95/t covering storage, handling, insurance and a margin. RTW deliveries from distributors can incur a further charge of between $20/t-$55/t, depending on delivery location and quantity.

Middle East Gulf Group III base oils produced in Al Ruwais, U.A.E. and Sitra, Bahrain are delivered in relatively small parcels of around 3-4,000 tons by sea into Hamriyah and Jebel Ali in U.A.E..

Netbacks in respect of Group III base oils loaded ex Sitra and Al Ruwais for distributor sales in Europe, U.S., India and China are maintained between $1,065/t-$1,085/t in respect of 4 centiStoke, 6 cSt and 8 cSt Group III grades.

Netbacks in respect of GTL Group III+ base oils ex Ras Laffan in Qatar, are raised to between $1,110/t-$1,135/t. Levels are given as indications only, since no distributors are involved in these cargoes, the product being mainly retained by Shell affiliates for in-house blending.

There are reports of two large cargoes of around 25,000 tons each, loading out of Ras Laffan for receivers in U.S. and Europe. The receivers will be the afiliates of Shell in both locations, U.S. Gulf Coast and Hamburg.

Middle East Gulf Group III netbacks are assessed using selling prices in known markets, less estimated marketing costs, margins, handling, storage and freight.

Africa

A Spanish refiner has re-issued FCA/FOB prices but these are still very high numbers. It is almost as if the supplier does not want any buyers to bid for the available barrels.. The supplier apparently does not have large quantities of each grade, but indications are for all grades, SN150, SN600 and BS 150.

The offered prices were perhaps as a carrot for buyers in Morocco to open negotiations to purchase a cargo which is believed to be required into Mohammedia.

There is not much further news on the large base oil cargo which loaded out of Europe ( Rotterdam and Fawley ) for Durban in South Africa. The cargo of around 19,000 tons of all types of base oil loaded late December before sailing for South Africa.

The trader who specialised in procuring and delivering Russian cargoes into Apapa in Nigeria, has a 10,000 tons cargo on the high seas with the origin now confirmed as USG, with perhaps an additional port of loading, which may have been USG or USAC. The cargo is underway and will arrive in the next few days, if not already discharged.

The Nigerian base oil market is gaining pace with deliveries and sales ex tank in Apapa. The market will start to shorten in terms of availabilities over the coming couple of months, but receivers/buyers do not appear to be overly concerned regarding further supplies.

Some traders have been bidding numbers to potential suppliers in the U.S. and also in Europe. The numbers are based on what would be necessary to achieve the ‘bid’ prices from Nigerian buyers. No good news has been flowing back at the levels proposed from any of the sources either in Europe or the U.S.

Prices are being proposed by buyers which reflect the last Russian cargo to arrive in Apapa, against which levels in respect of any new business is being discussed. Traders are commenting that it will be impossible to offer at the levels requested, assuming that Group I prices remain approximately where they are today. 

Bid levels are at $840/t for SN150, $900/t for SN500 and $1,060/t-$1,080/t for SN900.

These numbers are impossible to reach given, taking FOB levels as they stand, then adding in freight and a margin to cover all eventualities such as demurrage or detentions.

A trader who had a 10,000 tons parcel delivered, has been canvassing the market with low prices, without having the back up of a physical cargo.

The larger cargo of around 18,000 tons is on the water for Nigeria.

There could be an impending potential shortage of SN900, which has a noticeable price differential over SN500, and at the higher prices, some receivers and a number of buyers/blenders are unwilling to purchase at those levels.

Bid numbers from buyers are being heard at really low levels of $825/t in respect of SN150, $900/t for SN500 and $1,030/t for SN900, on the basis CFR Apapa.

The Nigerian naira black market exchange rate is NGN 1,427 to the dollar, as of 12th January 2026.

Group I, CFR Apapa

Russian origin
SN150: $825/t
SN500: $895/t
SN900: $985/t

U.S. Origin
SN150: $840/t
SN500: $900/t
SN900: $1,060/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.

Archived base oil price reports can be found through this link: https://www.lubesngreases.com/category/base-stocks/other/base-oil-pricing-report/

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