Group I Base Oil Trend: Spot Supply Drops

Asia and Middle East Weekly Group I Base Oils Commentary / Group I spot supply remains absent / Prices surge up to $150/mt WOW / Middle East conflict disrupts production

Jun 02, 2026

Spot availability of Group I base oils was effectively absent in the week to March 25, with no refineryactively offering material. Producers continued to prioritize term commitments and middle distillate production over base oil spot sales, as higher margins elsewhere kept feedstock directed away from base oil runs. Regional refiners are increasingly grappling with uncertainty over crude feedstock amid the conflict in the Middle East. The shipping disruption via the Strait of Hormuz has weighed heavily on the market. A prolonged closure could carry severe consequences for April and May base oil production across the Persian Gulf region. In the UAE, ex-tank SN500 remained thinly offered, with blenders operating at minimum production levels. In India, domestic refinery output has improved, supported by feedstock sourced from Iran and Russia. However, domestically...

Exclusive market movement data, shipping lineups, demand signals and pricing rationale continue in full report.

Unlock complete article access with a paid account.

Continue Reading With Membership

This is a preview. Login and activate a paid plan to read the complete article.