Base Oils and Lubricants: Weekly Global Market Review - 2 Apr '26

Middle East supply disruptions are proving structural rather than temporary, with lubricants prices facing significant increases

India's base oils supply fell to an eighteen-month low in February, cutting inventories ahead of peak seasonal demand as disruptions complicated restocking

Europe's January Group II supply rose to a five-month high, building a buffer that helped cushion the initial impact of disruptions

Japan's February supply stayed tighter than usual for a second month, while Brazil's output fell to a two-year low and Argentina’s supply to a three-month low, reducing global buffers as disruptions intensified

Italy's February lubricants demand rose for a ninth month, contrasting with broader European weakness that complicated blenders' response to March disruptions

US January output fell to a nine-month low due to winter weather, with tightening global supply eroding the import buffer that typically offsets such disruptions

Saudi Arabia cargo loadings rebounded in March, while a final UAE Group III cargo arrived in the US ahead of a pause in Middle East flows