Base Oils And Lubricants: Global Market Review

Base Oils and Lubricants: Weekly Global Market Review - 4 June '26

Iain Pocock

  • Higher base oils output in Japan and Brazil added to signs that refiners maintained firm production levels despite pressure to prioritise motor fuels.

  • Europe entered the supply-disruption period with elevated availability of all base oils grades, with steady US flows and strong Netherlands output pointing to Group II availability remaining adequate through Q2.

  • US base oils supply rebounded in March, but demand rose even faster, leaving inventories unusually low and reducing the buffer against any additional supply disruption.

  • Strong lubricants demand in Japan and Argentina extended into April, pointing to stock-building continuing beyond March's initial buying spree.

  • Singapore's exports fell to a multi-year low in the past month, partially offsetting signs of firmer supply and run-rates elsewhere in Asia.

  • Falling imports into Japan and signs of weaker exports from South Korea and Indonesia pointed to growing tightness in Group III base oils supply.

  • As summer approaches, higher blender inventories and slowing procurement pointed to balanced-to-tight conditions, reducing the urgency that drove March and April buying.

Global Base Oils Cargo Flows: Week To 4 June

Brazil’s April Base Oils Supply Outpaces Demand As Output Recovers

Europe’s March Group I Base Oils Supply Rises To Seven-Month High

US March Base Oils Supply Rebounds To 7-Month High

Europe’s Group II Supply Remains Elevated in March For Third Month