

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 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.
TotalEnergies wins Stellantis engine oil tender
TotalEnergies wins Stellantis engine oil tender
London, 5 June (Argus) — Italian automaker Stellantis has awarded TotalEnergies a five-year engine oil supply agreement starting from 2026, the major told Argus today. The decision marks the end of an historic contract with domestic supplier Selenia — a brand of motor oils owned by Malaysian state-owned Petronas. TotalEnergies will now cover Stellantis factory first fill and independent aftermarket. The Italian Labour Union and Stellantis have been approached for comment. Premium base oils such as Group III operate as the primary feedstock for automotive lubricants. Group III spot prices have recently strengthened as a result of global maintenance. Bahrain's state-owned Bapco carried out a 45-day turnaround at its 400,000 t/yr Group III unit in Sitra, while SK Enmove is undertaking maintenance at its 1.3mn t/yr Group III plant in Ulsan, South Korea since mid-May. Europe remains mostly reliant on Group III imports because only 13pc of the region's estimated 7mn t/yr of nameplate base oil output capacity dedicated to premium grades. Argus -assessed Group III 4cst spot prices with varying approvals stands 5pc higher on the month at €1080/t assessed on 30 May. Italian base oil and finished lubricant demand rose by 14pc across the first quarter of 2025 on the year to 109,000t. By Christian Hotten Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Singapore’s April base oil imports fall to 5-month low
Singapore’s April base oil imports fall to 5-month low
Singapore, 3 June (Argus) — Singapore's April base oil imports dropped to the lowest in five months, following a surge in imports to a 42-month high in March, GTT data show. Imports to the city state declined in tandem with a contraction in overall factory activity. Singapore's Purchasing Managers' Index dropped from 50.6 in March to 49.6 in April, halting 19 consecutive months of expansion, data from the Singapore Institute of Purchasing and Materials Management show. A reading above 50 indicates expansion. Total imports over January to April was 73pc higher than the same period last year, boosted by consistently higher imports in the first quarter. April's drop in imports was largely because of zero shipments recorded from the UK and US, which had sent a combined total of 19,800t of base oils to Singapore in March. Shipments from the UK and US are typically irregular, with five-year monthly averages of 2,300t and 3,800t respectively. Zero imports were received from Japan for the fifth consecutive month, as supplies remained curtailed on the back of multiple scheduled maintenances in the northeast Asian country. Singapore continued to seek Group I supplies from alternative sources such as Saudi Arabia and Russia. Supplies from Thailand slipped on the month but remained above the five-year monthly average of 2,500t. Persistently tight availability of Group I base oils supported firm prices in April. The Argus -assessed Asia fob export price for Asia Group I SN 500 increased from $918/t in March to $923/t in April, while bright stock rose from $1,241/t to $1,248/t over the same period. Group I SN 150 remained stable at $678/t fob Asia, as readily available supplies of Group II N150 helped offset limited supplies of the Group I light grade. By Tara Tang Singapore's base oil imports t Apr'25 m-o-m ± % y-o-y ± % Jan-Apr'25 y-o-y ± % South Korea 7,466.0 -3.3 -26.5 31,259.0 -25.6 Qatar 7,353.0 -46.9 -14.5 70,676.0 40.2 Russia 5,000.0 NA NA 18,278.0 32,539.3 Saudi Arabia 5,888.0 22.2 NA 19,012.0 169.6 Thailand 3,512.0 -42.9 38.1 20,740.0 252.8 Total 42,734.0 -53.9 10.6 289,847.0 72.9 Source: GTT Total includes all countries, not just those listed Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
German base oil sales hit record low in 2024
German base oil sales hit record low in 2024
London, 20 May (Argus) — German base oil demand fell in 2024 to the lowest on Argus' records, caused by rising electric and hybrid vehicle sales. This marks a back-to-back record decline following the previous all-time low set in 2023 , data from the Federal Ministry for Economic Affairs and Energy show. Base oil sales in 2024 were 32pc below the 10-year average of 920,000 t/yr ( see table ). Sales probably fell on a rise in German plug-in-hybrid and hybrid electric vehicle sales, which increased by 9pc and 14pc to 192,000 and 755,000 respectively, according to the European Automobile Manufacturers' Association. Uncompetitive base oil prices discouraged exports, which also fell to the lowest levels since Argus' records began. Average Argus -assessed Group I export spot prices on an fob basis for the SN 500 and bright stock grade rose by 6pc on the year in 2024 to $1,047/t and $1,279/t, respectively. By Christian Hotten German base oils t 2024 2023 ±% Sales 626,500 738,100 -20 Exports 172,115 213,378 -19 Production 236,730 233,300 1.5 Federal Ministry for Economic Affairs and Energy Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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