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.
Chevron expands base oils distribution network
Chevron expands base oils distribution network
London, 3 August (Argus) — Chevron will become the exclusive distributor of Group II base oils to US firm HF Sinclair Lubricants & Specialties in Canada from 1 May next year, as the companies adjust supply arrangements ahead of HF Sinclair's planned Ontario plant closure. The agreement follows HF Sinclair's decision to retire its 15,600 b/d Group II/III base oils unit in Ontario by 2027 . It was announced alongside a separate multi-year strategic agreement under which South Korea's SK Enmove will supply Group III base oils to HF Sinclair. Chevron said the Canadian distribution deal is part of a broader base oils network that will continue to include Renkert Oil as a distributor for selected products. Renkert will remain Chevron's distributor for Paralux and Paramount process oils in the US, Canada and Europe. It will also continue to distribute Nexbase Group III base oils in the US and Canada, and Chevron Group II base oils in the US outside HF Sinclair's exclusive territory. "Customers need more than high-quality products, they need confidence in their supply partner," Chevron Base Oils general manager Alicia Logan said. "By working with both HF Sinclair Lubricants & Specialties and Renkert Oil, we're building on each partner's unique strengths to deliver reliable supply, local expertise and the flexibility our customers need as markets continue to evolve." Chevron is one of the world's largest suppliers of Group II, Group II+ and Group III base oils. The company said it plans to introduce a Group III+ offering in early 2027. By Gabriella Twining Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
HF Sinclair, SK Enmove partner on base oil supply
HF Sinclair, SK Enmove partner on base oil supply
Singapore, 3 August (Argus) — South Korean refiner SK Enmove and US energy company HF Sinclair's Lubricants and Specialties segment announced today strategic agreements to supply Group III base oils to North America. SK Enmove will deliver Group III base oils to HF Sinclair's Lubricants and Specialties segment under a multi-year arrangement, although volumes were not disclosed. HF Sinclair's Lubricants and Specialties segment will also be SK Enmove's exclusive distributor for its key markets in North America. SK Enmove operates as a company-in-company under SK On. The partnership aims to strengthen HF Sinclair's Lubricants and Specialties' supply chain resilience and drive SK Enmove's growth in the North American market, by leveraging the former's sales and logistics network and the latter's consistent supply of premium base oils. The partnership follows HF Sinclair's 28 July announcement of plans to separate its Lubricants and Specialties segment through the creation of an independent, publicly traded company. The company will also retire a substantial portion of its 15,600 b/d Group II/III base oil unit in Ontario, Canada by 2027, and tap on another global producer for Group II supplies. The plant closure is set to squeeze Group III supply availability in a region that is already reliant on overseas supply. According to Argus' base oil supply index, Group III accounted for only 4pc of the region's base oils nameplate production capacity in 2025. While several plants have sought to maximise Group III output, the region remains a net importer because of a significant yield drop resulting from more severe hydrocracking. But it will also coincide with the start-up of two new Group III plants in the US. Chevron is scheduled to start its Group III unit in Pascagoula, US from the fourth quarter of 2026. ExxonMobil's 400,000 t/yr Group III plant in Baytown, US, will begin production in 2028. By Tara Tang Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US base oil/lube market struggles with crude volatility
US base oil/lube market struggles with crude volatility
Houston, 31 July (Argus) — US base oil and lubricant market participants continue to struggle managing risk and prices amid persistent crude volatility due to the US-Iran war. Base oil supplies are tightening in the US and globally for all grades, especially Group III pricing, pushing all US base oil prices to record highs. The record-high base oil prices add risk to blenders in terms of their inventory carrying costs , as well as managing inventory levels because of concerns about being overstocked if the market starts to decline. Finished lubricant blenders are working to pass along base oil increases to their customers, and have succeeded in some cases. But several blenders are facing pushback from lubricant buyers unwilling to to accept the full increases, due largely to crude volatility. Nymex WTI hit its lowest during the US-Iran war in early July, in the upper-$60s/bl, despite minimal changes to crude and vessel traffic through the strait of Hormuz. But it later rose with resumed fighting, closing 24 July just shy of $90/bl, then fell below $80/bl on 28 July before rebounding to the mid-$80s/bl level by 31 July. This pushed lubricant buyers to argue for lower prices because crude is often a major factor in base oil and lubricant pricing. Additionally, no Group II base oil producer announced posted price increases in July for their base oils. Lubricant buyers also often have prices linked to refinery postings, even if blenders are not as linked to refinery postings on their base oil purchases. Lubricant blenders received no price relief on base oils in July and remained constrained on lubricant production. Several Group III sellers tightened allocation levels in July, while Group II sellers kept most blenders on contract minimums. This is creating increased tightness on lubricant availability, particularly for 0W, full synthetic and Dexos-approved grades. The tightness in those grades has pushed some blenders to shift to more synthetic-blend and conventional motor oils, which use less or no Group III volumes. By John Dietrich Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Group II base oil margins rise on lower feedstock costs
Group II base oil margins rise on lower feedstock costs
Houston, 6 July (Argus) — The US Group II base oil premiums continued to rise to declining feedstocks and competing fuel prices for the week ended 3 July. US Group II base oil spot prices themselves were steady because market participants continue to gauge market uncertainty stemming from peace negotiations between the US and Iran. Some US buyers are easing up on larger base oil purchases because of lower crude values. Others are continuing to build up inventory levels to maximize profit on the finished lubricant side and to prepare for the US Atlantic hurricane season. Domestic sellers are uninterested in lowering prices while Group II availability remains lean and demand is holding relatively firm. The Argus US domestic Group II N100 premium to four-week average low-sulphur vacuum gasoil (VGO) rose to its highest at $3.99/USG, up from its previous record of $3.86/USG. Margins from the same time frame in 2025 were $1.27/USG, a $2.72/USG discount from current levels. Four-week average low-sulphur VGO prices declined because selling interest was low fluid catalytic cracker (FCC) margins fell. FCC margins are measured by a 70:30 split between conventional gasoline and ultra-low sulphur diesel (ULSD). Base oil premiums to diesel typically incentivize refiners to direct more VGO feedstock towards base oil production since both products utilize the same feedstock. The Argus US domestic Group II N100 premium to four-week average US Gulf coast diesel increased to its record high at $3.15/USG, up from its previous high of $3.04/USG. Year-earlier margins were 93¢/USG, a $2.22/USG discount from current levels. The four-week average low-sulphur VGO to four-week average WTI crude spread widened to $23.02/bl, up from $22.62/bl the week before. Four-week average low-sulphur VGO fell by 13¢/USG compared with four-week average WTI crude's 11¢/USG drop. By Karly Lamm Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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