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 rise for 10th week
US Group II base oil margins rise for 10th week
Houston, 6 May (Argus) — US domestic Group II base oil margins rose over feedstocks in the week ended 2 May, marking the 10th consecutive week of increases on lower energy markets and firming base oil demand. The Argus US domestic spot Group II N100 premium to four-week average low-sulphur vacuum gasoil (VGO) rose to $1.41/USG, up from $1.35/USG last week. Margins remained above year-earlier totals of $1.03/USG. The Argus US domestic spot Group II N100 premium to four-week average US Gulf coast diesel was $1.14/USG, up from $1.09/USG last week. Margins remained above year-earlier totals of 89¢/USG. During the past 10 weeks, base oil margins over VGO have risen by 42¢/USG. Margins over diesel have risen 12 of the past 13 weeks and are up by 44¢/USG in that span. Group II N100 prices were steady during the week, while mid- and high-viscosity grade prices fell by 1¢/USG. There are fewer Group II spot volumes in the domestic market because a key refiner is currently down for a planned turnaround and another seller is not running at full rates. Spot demand is mixed and base oil prices continue to experience a firm ceiling because of steady prices for downstream finished lubricants. Four-week average VGO prices continued to slip on weaker crude values and lower-priced atmospheric tower bottoms (ATBs), an alternative feedstock option. Four-week VGO values fell by 6¢/USG during the week, while four-week diesel values fell by 5¢/USG. The low-sulphur VGO premium to four-week average WTI crude narrowed to $12.13/bl from $12.20/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 Luberef’s profit drops in 1Q
Saudi Luberef’s profit drops in 1Q
Singapore, 5 May (Argus) — Profit of Saudi Aramco's base oil subsidiary Luberef dropped by 7pc in the first quarter because of declining margins. Luberef's profit fell to approximately 222mn Saudi riyals ($59.2mn) in the first quarter from 239mm Saudi riyals a year earlier, the company reported. Revenue totaled about SR2bn in the first quarter compared with SR2.18bn a year earlier. Profit dropped because of a decrease in by-products crack margins, despite an increase in base oil crack margins. Base oil crack margins rose to SR1,755/t in the first quarter, increasing by 9pc from a year earlier. Luberef sold 272,000t of base oils in the first quarter, little changed from 271,000t a year earlier. The company tapped alliance companies S-Oil and Motiva and introduced its bright stock and Group II N110 supplies to higher netback markets. The Yanbu Growth II project continues to be a key focus of growth for the company. The Yanbu facility completed a maintenance in the first quarter to replace hydrocracker catalyst but took an additional eight days more than planned. The maintenance was previously scheduled for 15 days. The project progress was at around 42pc of requirements by March, slightly behind plan. The project is in the procurement phase and faces delays in material procurement and license approvals for new equipment. But the project's progress is expected to pick up in the second and third quarters. The company plans a 45-day maintenance from mid-November to complete a scheduled five-year maintenance cycle and for the mechanical completion of the project. The Yanbu facility will have a production capacity of 1.3mn t following the expansion. By Chng Li Li Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
India's Apr Group II heavy grade base oil premiums rise
India's Apr Group II heavy grade base oil premiums rise
Singapore, 29 April (Argus) — India's Group II heavy grade premiums to light grades in April rose to levels last observed in November 2021, because heavy grade supply remained insufficient to meet demand. Group II heavy-grade premiums to light grades rose to $268/t in April, up from $239/t in March. This is significantly higher than its five-year average premium of $141/t. India's imported Group II N150 prices fell in April because of a drop in feedstock costs. But Group II heavy grade N500 cfr India prices have risen on limited spot supply availability, widening the spread between the two. India's delivered N500 prices averaged $1,038/t in April, up from an average of $1,031/t in March. Conversely, light grade N150 cfr India prices averaged $770/t, down from $793/t in March. Heavy grade spot supply has been persistently limited because Asian refineries typically use lighter crude slates as feedstocks and yield lower volumes of heavy-grade base oils. A South Korean refinery has reduced spot supply since late 2024 in preparation for maintenance at the end of February, exacerbating tight supply of the heavy grade. Indian Group II domestic supply is also being curtailed between February to April because of maintenance, except for N150, which has remained in ample supply. Tight supply of Group II heavy grades is expected to ease with the restart of the South Korean refinery in second-half April. This could limit the size of any price upside for heavy grade supplies. By Chng Li Li Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US tariff exemptions spare some commodity trade
US tariff exemptions spare some commodity trade
Singapore, 3 April (Argus) — US president Donald Trump has exempted many energy and mineral products from his new import tariffs, potentially reducing the immediate impact on commodity trade. But the threat of global economic disruption nevertheless sent commodity futures sharply lower today. The tariffs, announced by Trump on 2 April, include carve-outs for "copper… semiconductors… certain critical minerals, and energy and energy products," the White House said. The full list of exempted products includes many non-ferrous metals, oil products, base oils, coal and some fertilizer and chemical products. The 2 April tariffs will not apply to steel and aluminum, cars, trucks and auto parts, which already are subject to separate tariffs. A 25pc tariff on all imported cars and trucks came into force on 3 April, while a 25pc tax on auto parts will take effect on 3 May. Oil futures fell by over 3pc early in Asian trading hours, despite the exemptions, on concerns about the impact of the new tariffs on the global economy. The June Brent contract on the Ice exchange fell by as much as 3.2pc to a low of $72.52/bl in Asian trading, while May Nymex WTI dropped by 3.4pc to $69.27/bl. Both contracts remained close to their daily lows at 3:15pm Singapore time (07:15 GMT). Exchange-traded metals prices also fell. The declines came despite a drop in the value of the dollar, which would typically support prices of commodities by making them cheaper for buyers using other currencies. By Kevin Foster Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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