

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.
US Group II base oil margins fall for 7th week
US Group II base oil margins fall for 7th week
Houston, 1 July (Argus) — Domestic Group II base oil margins over feedstocks and competing fuels extended their decline for a seventh consecutive week on elevated feedstocks and firmer competitive fuel prices. The Argus domestic spot US Group II N100 premium to four-week average low-sulphur vacuum gasoil (VGO) dropped to $1.28/USG for the week ended 27 June, from $1.30/USG the week prior. Margins remained below year-earlier totals of $1.36/USG. The Argus domestic spot US Group II N100 premium to four-week average US Gulf coast diesel was $1.00/USG, down from $1.06/USG the week prior. Margins also remained below year-earlier totals of $1.13/USG. US Group II base oil spot prices were flat because muted demand outweighed fewer spot volumes. Group II light-grade supplies are limited, and domestic re-refiners are still working to catch up on orders following a heavy turnaround season. Mid-grade supplies are more balanced because of recent exports to South America and Asia. Heavy grade supplies are not as lean as light grade material, but some buyers are noticing more limited availability. Other buyers are not having issues obtaining spot volumes. Four-week average vacuum gasoil (VGO) rose for a seventh consecutive week because of persistent tightness. Margins for fluid catalytic crackers (FCC) also increased. Four-week average diesel prices have steadily increased since 30 May. The low-sulphur VGO premium to four-week WTI crude narrowed further to $12.79/bl from $13.13/bl the week prior. By Karly Lamm Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Saudi’s base oil re-refiner YUNITCO to expand capacity
Saudi’s base oil re-refiner YUNITCO to expand capacity
Singapore, 30 June (Argus) — Saudi base oil re-refiner YUNITCO's Yanbu plant will undergo maintenance in August-November as part of its plans to expand its capacity to 200,000 t/yr in December, up from the current 120,000 t/yr. Each of the plant's three production trains will shut for around 45 days, the firm told Argus . The plant produces re-refined Group I SN 150 and SN 300 base oils and will also produce re-refined SN 500 after the expansion. The re-refiner is also studying further expansion to produce ultra-high viscosity grades, including re-refined Group I SN 900 and bright stock. Global supply of these heavy grades, especially bright stock, has been limited in recent years because of permanent Group I refinery closures . Re-refining uses various processes to convert used oils back into base oils for use as feedstock in blending. Re-refined base oils are therefore more environmentally friendly, and demand has risen in recent years because of government regulations and companies placing more emphasis on environmental, social and governance (ESG) responsibilities. YUNITCO currently uses distillation and solvent extraction processes. The company is building two hydrofinishing units and will convert the Yanbu plant to produce re-refined Group II/II+ base oils by hydrotreatment by December 2027. This production shift also aligns with the wider industry's move towards using premium-grade base oils to produce high-performance lubricants, which in turn become used-oil feedstock for re-refining. YUNITCO is also planning to expand into Egypt because of growing demand for base oils in Africa. The new plant in Cairo will have a capacity of 100,000 t/yr of re-refined Group I SN 150 and SN 500 by the end of 2027. The proximity and connectivity between Egypt and Saudi Arabia through the Red Sea are other factors for the company's expansion, alongside rising base oil consumption. Africa predominantly uses conventional-engine cars, unlike markets such as Europe and China where the market share of electric vehicles have risen in recent years. The company expects this trend in Africa to continue for the next 15-20 years, supporting demand for finished lubricants, especially monograde engine oils. By Chng Li Li Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Dutch imports rise to 6-year high in 2024
Dutch imports rise to 6-year high in 2024
London, 23 June (Argus) — Dutch base oil imports rose to a six-year high in 2024 due to planned maintenance at ExxonMobil's 900,000 t/yr Rotterdam refinery and competitive base oil prices. Production slipped on maintenance work — taking imports 7pc higher than the 10-year average at 1,567,000t, according to government data. Imports rose from the US especially by 13,200t to 20,000t across 2024, on the year, as buyers looked towards alternative Group II supplies from key producers Chevron and P66. Competitive base oil prices further incentivised purchases — average assessed Argus spot prices for Group II N100 and N600 grade on an fca basis slipped by 2pc and 4pc on the year at €1,097/t ($1,258/t) and €1,238/t, respectively. But overall Dutch demand slipped due to a rise in Dutch battery electric vehicle sales by 16pc on the year to 132,170 units. While gasoline car sales fell by 26pc to 83,400 units on the year, data from the European Automobile Manufacturers' Association show. By Christian Hotten Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US base oil output slips 5pc in March
US base oil output slips 5pc in March
Houston, 5 June (Argus) — Domestic base oil and lubricant production in March fell by 5.3pc from year-earlier levels because refiners were hesitant to build up inventories while US tariff uncertainty kept demand muted. Domestic producers typically build up base oil volumes in the spring to supply higher demand tied to increased driving activity in the summer months. US president Donald Trump's tariff announcements and subsequent delays incentivized refiners to postpone building up stockpiles. US base oil production fell to 156,450 b/d in March from 165,290 b/d a year-earlier, according to the Energy Information Administration (EIA). March production rose by 11pc from 140,710 b/d in February. US crude production reached a record 13.5mn b/d in March. Firmer base oil margins kept vacuum gasoil (VGO) feedstocks directed towards base oil output rather than competing fuels production. Higher base oil margins prevented base oil producers from curbing their output further, despite thinner buying interest. Paraffinic base oil production in March decreased by 6.7pc to 130,940 b/d from 140,350 b/d a year-earlier. March output rose by 7.4pc compared to February production of 121,930 b/d. Paraffinic output varied in US regions because of ongoing and upcoming planned maintenance. US Atlantic coast production declined from the prior month by 14pc while a key Group I refiner was on turnaround. A key Group II refiner in the US Gulf coast also took a turnaround in mid-March, but nearby regional suppliers offset some of the loss, holding total production levels flat. Production fell 3pc in the LA Gulf coast region because a key Group II supplier was running at reduced rates. Base oil output rose by 3pc in the Texas Gulf coast region and by 15pc in the US midcontinent region. Naphthenic production was 25,520 b/d in March, a 2.3pc increase from year-earlier levels and a 36pc rise from February levels. Firm demand for light- and heavy-grade naphthenics kept production rates elevated alongside higher crude values. Demand for naphthenic grades was led by the transformer oil and tire/rubber sectors. By Karly Lamm US base oil output by region b/d Mar 2025 Feb 2025 m-o-m± % US Gulf coast 101,480 101,460 0 Texas Gulf coast 48,740 47,180 3 Louisiana Gulf coast 47,260 48,680 -3 US Midcontinent 6,160 5,360 15 US Atlantic coast 5,100 5,890 -14 Energy Information Administration (EIA) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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