Base Oils and Lubricants: Weekly Global Market Review - 15 May '26

 Asia's supply outlook turned more mixed — elevated Singapore trade flows and high China output cushioned disruptions even as Taiwan and South Korea signalled tightening availability

China's high base oils output softened the impact of global disruptions domestically — but reliance on imported Group III left exposure to tighter overseas markets

Taiwan's April shipments fell to multi-month lows while May cargo flows stayed subdued — pointing to shrinking Asia export availability

Asia's March lubricants demand surged to a record high — absorbing surplus supply and accelerating inventory drawdowns ahead of disruptions

Global balances had already tightened before the disruptions — lower surplus availability and lean blender inventories amplified the impact once outages emerged

US March exports surged to India and Nigeria while imports from key Group III sources fell — tightening domestic availability ahead of sharper Group III shortages

US base oils prices recorded their fastest monthly inflation since 2022 while Safety-Kleen's Q1 earnings climbed — showing how tightening markets were rapidly lifting margins and prices

Middle East disruptions and higher prices increased focus on supply continuity — making Luberef's steady output and sales plans a rare source of stability amid wider disruption