Penthol, the U.S. distributor of Adnoc’s API Group III+ base oil, has declared force majeure on contract commitments after U.S. attacks on Iran disrupted shipping routes from the Persian Gulf, according to a customer notice.
Around one-fifth of global Group III production originates in the region and must transit the Strait of Hormuz, one of the world’s most important energy chokepoints. The strait has been largely closed since the U.S. launched attacks on Iran in February.
Penthol said the disruption has materially affected base oil production, transportation and supply, preventing it from fulfilling contractual obligations. Adnoc shut its Ruwais refinery complex on March 10 following an Iranian drone strike and later resumed production at reduced rates ahead of a June ceasefire that would have reopened the strait to shipping.
The company warned the disruption could persist, adding further uncertainty to the global Group III base oil market.
The supply interruption is raising concerns among lubricant manufacturers and marketers, particularly in the U.S., as they assess whether inventories can meet demand while Adnoc shipments to Penthol remain suspended and whether alternative Group III supplies can be secured.
Penthol did not say when deliveries might resume, adding that it is evaluating alternative supply and logistics options while remaining in contact with Adnoc.
The notice does not state that Adnoc has declared force majeure or halted all base oil production or global shipments. Rather, it says Penthol’s supply of Adnoc base oil has ceased.
“The duration of the disruptions and cessation of supply is currently unknown,” the notice said.
Penthol declined to comment further.
(Additional reporting by Gabriela Wheeler)