It’s not an industry secret that the discrepancy between base oil production capacity and finished lubricants demand is growing, and that the current overhang is impacting the market as the bubble waits to burst. Insiders say rationalization within the industry is inevitable.
According to independent lubricant blender Fuchs Petrolub SE, global finished lube demand, excluding marine oils, reached 36.4 million metric tons in 2018. Meanwhile, nameplate base oil production capacity soared to over 60 million metric tons, according to LubesnGreases 2019 Guide to Global Base Oil Refining.
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