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.
Base oils market participants trust Argus to help them stay up to date on the latest developments and implications for their markets. Whether referring to our spot price assessments or attending our conferences, our insights keep you ahead of the curve.
Our base oils and waxes market intelligence includes weekly global price and market reports, price forecasts and outlooks, as well as conferences and networking events.
Latest base oils and waxes news
Browse the latest market moving news on the global base oils and waxes market.
India's base oil demand rises ahead of peak season
India's base oil demand rises ahead of peak season
Singapore, 31 August (Argus) — Base oil spot discussions in India have risen as buying interest heightens and price expectations between buyers and sellers narrow, market participants said. India's Group II N150 and N500 cfr import prices rose by $10/t in the week to 28 August to $1,560/t cfr India and $1,650/t, respectively. The country's southwest monsoon season typically ends in September, and demand typically receives a boost from October as inventories deplete. But replenishment demand is currently firmer because of limited spot imports over the last few months. Lower bids from India had previously incentivised Asian refiners to divert more spot volumes to higher-priced markets, including the Americas, Europe, and other parts of Asia. Demand from these outlets has since waned. This is incentivising suppliers to prioritise September-loading cargoes to India. Price expectations between buyers and sellers in India have also narrowed as Group II export prices from Asia extended its drop over the last three months. This is facilitating trade and spot discussions. India's Group II N150 cfr import prices were at a $20/t discount to Asia fob export values in the week to 28 August. The discount is significantly lower than its peak of $260/t at the end of April, when prices in Asia surged because of higher feedstock costs and supply disruptions during the US-Iran war. India's Group II N500 cfr import prices rose to a $50/t premium to Asia fob export values in the week to 28 August. This is a reversal from a $250/t discount at the end of April. Group II heavy-grade availability in the country is more limited compared with light grades as domestic production yields higher output of the latter because of the crude slate and production technology utilised. Some market participants have held back purchases even as spot activity rises, given that production at a new 160,000 t/yr Group II base oil unit in Koyali, Vadodara, Gujarat is set to stabilise from September. This raises the prospect of more supplies for the domestic market. By Chng Li Li Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Singapore’s base oil exports rise in July
Singapore’s base oil exports rise in July
Singapore, 31 August (Argus) — Singapore's base oil exports increased in July for the second consecutive month, according to global trade tracker (GTT) data, because output partially recovered at a key Singapore refinery. July exports rose on the month and year to 142,700t, but was still 13pc below the 2021-25 monthly average of 164,800t. Supplies from Singapore plunged to a six-year low in May , because the de facto closure of the strait of Hormuz disrupted crude supplies and base oil production in the city state. And a key refinery cut term supplies by around 40pc from May. Overall exports have risen since May, because a key refinery progressively lifted term supply cuts for Group I base oils. Group II term volumes remained limited and are only expected to rise from August. Export demand remained stable, supported by curtailed availability. Southeast Asia absorbed 47pc of total Singapore exports in July — slightly higher than its typical share of about 41pc, but down from 54pc in June. China was the single largest buyer, accounting for 27pc of total exports, followed by Indonesia at 19pc and Thailand at 14pc. Lower production continued to drive imports , which hit an over five-year high in July, and supported the inflow of cargoes with a closed arbitrage to Asia. By Tara Tang Singapore's base oil exports t Jul'26 m-o-m ± % y-o-y ± % Jan-Jul'26 y-o-y ± % China 38,040 44.5 81.9 277,367 8.1 Indonesia 26,528 -7.3 -7.2 215,537 -8.6 Thailand 20,394 -4.6 8.2 157,661 26.5 India 16,577 1.2 -24.2 193,870 -20.8 Total 142,701 20.8 0.4 1,136,866 -7.2 Source: GTT Total includes all countries, not just those listed Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Saudi base oil Luberef’s profit tripled in 2Q
Saudi base oil Luberef’s profit tripled in 2Q
Singapore, 3 August (Argus) — Saudi-state controlled Aramco's base oil subsidiary Luberef nearly tripled its profit on the year in the second quarter of 2026 as a result of record high base oil margins. The company posted a profit of 734mn Saudi riyals ($196mn) in the second quarter, up from SR245mn a year earlier. Revenue increased by 52pc to SR3.42bn from SR2.25bn in the same period. In the first half of this year, profit rose by 112pc on year to SR992mn, from SR467mn a year earlier. Revenue rose by 27pc on year to SR5.58bn in first half, from SR4.38 in the previous year. Second quarter sales volumes stood at 313,000t, marginally higher from year-earlier level, but the company's crack margin rose by 91pc to SR3,625/t, a record high. Strong demand for Group II base oils in the second quarter supported the firm's profits. Supply of Group II grades partially compensated for the global shortage of Group III base oils, keeping Group II prices supported. Middle Eastern Group III supply has been disrupted since the start of the US-Iran war at the end of February, leaving global buyers scrambling for volumes. Some blenders that do not require approvals, switched to using more Group II grades with similar viscosities as substitutes for Group III grades. A planned maintenance at the Yanbu facility, originally schedule for August, has been postponed to October to allow the company to benefit from strong base oil margins. As a result, the Growth II expansion is now expected to come on stream in the first half of next year. Following the expansion, Luberef will have a Group III base oil nameplate capacity of 175,000t/yr. Addressing concerns about the impact on exports amid current disruption along Bab el-Mandeb strait, the company said there are several alternatives, including re-routing cargoes through the Cape of Good Hope and increasing deliveries by trucks locally. It added that ships are still transiting through Bab el Mandeb and that Luberef's tankers continue to be nominated and accepted, although the company acknowledged that the situation is evolving. Yemen's Houthi militant group started a maritime blockade on Saudi vessels in the Red Sea on 20 July. In the second quarter, Luberef also signed an agreement with Indian firm APAR Industries to supply base oils at the LubeHub Value Park in Yanbu Industrial City, supporting the local production of transformer and specialty oils. By Chng Li Li Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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.
Spotlight content
Browse the latest thought leadership produced by our global team of experts.
Base Oils Unpacked: 2025 in Review, 2026 in Focus
Americas Base Oils: What do tariffs have to do with it?
Our base oils experts in Sao Paulo, Houston and London discuss the most pressing market developments.
Deeper dive into VGO, diesel and base oil dynamics
Explore our base oils and waxes products
Regular price and market insights, from spot prices to forecasts, for the global base oils and waxes markets.
Key price assessments
Argus prices are recognised by the market as trusted and reliable indicators of the real market value. Explore some of our most widely used and relevant price assessments.
