Base oils and waxes
Overview
As the world pivots towards decarbonisation, challenges and opportunities loom for base oils production and demand. Staying on top of this market is more important than ever to realise these opportunities and mitigate pricing risk.
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Latest base oils and waxes news
Browse the latest market moving news on the global base oils and waxes market.
Taiwan's Formosa shuts base oil unit on upstream issue
Taiwan's Formosa shuts base oil unit on upstream issue
Singapore, 1 July (Argus) — Taiwanese refiner Formosa has shut its base oil unit as of 29 June, because of a technical issue relating to its upstream vacuum distillation unit which has cut off base oil feedstock, according to the firm's base oils distributor. Base oil production is expected to restart by mid-July. Spot offers have temporarily paused. Shipments for bulk volumes are more impacted than flexibag supplies. Loadings for bulk volumes are mostly deferred to late July, while loadings for flexibag supplies are only deferred until around mid-July. Term allocations are so far unchanged. The upstream technical issue first started around 10 June, which curbed feedstock for the base oil, mainly affecting output for the heavy-grade. The 600,000 t/yr Group II refinery is scheduled to undergo a 45-day maintenance in mid-October. News of the shutdown was met with a subdued response from buyers, given that demand has been weakening on the back of lower feedstock values and expectations that the US-Iran peace deal will weigh on prices further. The Argus -assessed Asian fob export prices for Group II N150 and N500 fell by $30/t to $1,745/t in the week ending 26 June. By Tara Tang Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US April base oil exports up by 5.8pc: EIA
US April base oil exports up by 5.8pc: EIA
Houston, 30 June (Argus) — Total US base oil exports rose by 5.8pc to 125,570 b/d in April from year-earlier levels, according to the Energy Information Administration (EIA). Total monthly export volumes fell by 13pc from March totals of 110,650 b/d. US exports to Mexico declined by 44pc from year-earlier levels and by 22pc from March totals. Base oil exports to Brazil rose by 7.8pc from 2025 levels and were up by 33pc from March levels. US exports to Belgium, France and the Netherlands — a proxy for European demand — increased by 86pc from a year earlier and by 97pc from month-earlier levels. European volumes most likely increased because the closure of the strait of Hormuz continued to incentivize buyers to look towards US volumes. European bids were deemed more attractive by several US base oil sellers. US exports to Chile, Ecuador and Peru — a proxy for west coast South American demand — fell by 20pc from April 2025 totals. However, monthly totals rose by 6.5pc from March 2026 volumes. Base oil exports to Canada rose by 3.6pc in April from a year earlier and up by 5.3pc from March levels. US refiners experienced firmer demand from multiple regions because of decreased base oil availability caused by US-Iran war impacts and the lack of movement through the strait of Hormuz. Some regions reported fewer US export volumes because sellers were prioritizing term customers and holding onto more surplus base oil volumes for domestic customers. By Karly Lamm US base oil exports b/d Country Apr-26 m-o-m±% y-o-y±% Mexico 22,600 -21.8 -44 Brazil 13,770 33 7.8 Belgium 21,870 120 147 France 770 -60 -45 The Netherlands 830 1,192 -64 India 130 -98 -95 Ecuador 2,900 150 0 Peru 3,200 -9.1 -31 Cuba 3,140 -8.1 -27 Canada 10,570 3.6 5.3 Total 125,570 -13.5 5.8 *Total includes all countries, not just those listed Energy Information Administration (EIA) Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India's base oil imports fall in April on US-Iran war
India's base oil imports fall in April on US-Iran war
Singapore, 30 June (Argus) — India's base oil imports fell by 15pc on the year in April because of tightening overseas supply due to the US-Iran war, data from Global Trade Tracker (GTT) show. Asian refiners' run rates were impacted by feedstock supply disruption from the Middle East. Refinery yields declined further , especially for the heavy grades, because refiners switched to lighter and sweater crude alternatives. Several refiners also reduced term supply allocations. Refiners sought higher prices due to low inventories and elevated crude and gasoil prices. Lower Indian cfr import prices compared with other regions disincentivised refiners from offering cargoes to India. Producers diverted volumes to markets such as Asia-Pacific, the US, Europe and Latin America, where prices were higher. The UAE was one of India's key suppliers, but exports dwindled in April given the effective closure of the strait of Hormuz. Imports from Taiwan rose significantly, likely reflecting diverted cargoes originally bound for the UAE, which became inaccessible after the start of the war. Imports from Egypt rose sharply, because blenders turned to alternative supplies. Imports from Egypt are typically irregular. The country largely produces Group I grades, but these imports were likely re-exports of Group I grades with a low-viscosity index (LVI) from another region, according to market participants. By Chng Li Li Indian base oils imports t Apr'26 m-o-m ± % y-o-y ± % Jan-Apr'26 y-o-y ± % South Korea 141,523 47.2 -8.0 477,011 21.2 Taiwan 24,837 1,138.1 24,254.0 54,917 69.5 Saudi Arabia 20,701 -1.9 -21.9 53,889 -25.8 Egypt 15,647 N.A. 5,065.1 15,647 5,098.3 Spain 15,522 641.3 34.7 39,662 24.0 Singapore 15,435 -71.4 -53.6 131,361 -6.8 Monthly total 254,848 -6.9 -14.5 1,043,681 9.4 Total includes all countries, not just those listed Source: GTT Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Shell’s new concept car spurs base oil usage
Shell’s new concept car spurs base oil usage
London, 25 June (Argus) — Shell continues to drive ultra-low viscosity base oil demand as the market transitions towards electric vehicles (EV), supporting the need for battery coolants for its proof-of-concept 10 Challenge car, the company announced on 24 June. The new cooling technology, which uses ultra-low viscosity gas-to-liquid (GTL) Group III base oils produced at Shell's 1.1mn t/yr Pearl plant in Qatar, will allow faster charging, lighter systems, improved lifecycle efficiency and reduced battery pack costs for next generation EVs. Group III base oil shipments from the Mideast Gulf to the US and Europe have been curbed on the de facto closure of the strait of Hormuz. These volumes account for 47pc of US Group III imports and 62pc of Europe's imports, EIA and GTT data show. Shell's Pearl GTL plant in Qatar was also hit by a missile on 18 March , and repair works are expected to take at least 12 months. Argus assessed European Group III 4cst price surged from €1,260/t on 27 February to €3,270/t on 19 June, due to supply shortages because of the war. Other technologies are also driving demand for ultra-low-viscosity base oils. Group III base oils are also used in cooling fluids for data centres . Shell Lubricants' immersion cooling fluid was the industry first to receive official certification from chip manufacturer Intel , allowing products to be used in data centres. By Echo Dai Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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