Base Oils and Lubricants: Weekly Global Market Review - 29 May '26

Signs of easing supply tightness emerged across Asia as crude prices extended their decline, encouraging buyers to hold back.

South Korea and India maintained high base oils run-rates in April despite global disruptions and pressure to prioritise diesel output, supporting steady regional supply.

China’s high domestic base oils output curbed import demand, while stronger lubricants exports increased volumes in external markets.

Price uncertainty pointed to buyers holding back on arbitrage shipments if surplus Asian volumes emerge, limiting outflows from the region.

Saudi Arabia maintained elevated exports in May with additional cargoes bound for Europe, increasing regional supply.

Strong demand in Italy and Brazil extended into April, but higher inventories and elevated prices incentivised blenders to step back from additional purchases.

The US base oils market remained structurally tight ahead of hurricane season, with stock-building needs pulling against resistance to high prices.