This issue is about base oil, which is unsurprising given the nature of the magazine. But we take a thorough look at the interplay between API Group I to Group II from a number of perspectives.

First, we ask whether fresh sanctions imposed on Iran may severely disrupt supplies of lowly Group I base stocks, the mainstay of passenger car motor oil formulations in developing markets, including Asia and Africa.

Talking of Europe, the continent is certainly moving at pace in its transition to higher grades, driven by new performance demands from the ACEA 2016 oil sequences, according to one industry insider I spoke to recently. Although late to the game compared with the United States and Japan, Group II is elbowing its way in, helped by the imminent opening of the new 1 million tons per year ExxonMobil Group II unit in Rotterdam.

Finally, we look at Africa, where Group I continues to be the predominant base oil but where Group II is making minor inroads. This slow growth is in the face of some key factors. One such is the more advanced car market in South Africa, the continents second-largest economy and with the newest car parc. The other is Morocco and Kenya, two of the continents hubs for car assembly plants, which demand more advanced finished lubricants for factory fills.

– Simon Johns

Simon@LubesnGreases.com