South Korea also pledged to secure $100 billion of US energy products over four years in exchange for a lower tariff rate from 25% to 15%. China is wary to begin securing increased Urals crude amid the President’s threats of sanctions and rising tariffs.
As it stands, trade of Russian crude volumes look to be more limited while the US looks to export more instead. Base oil production linked to crude slate usage and the switch away from heavy sour crudes to the lighter sweeter US-origin crude will likely impact the yield output of base oils.
The heavy and ultra-heavy viscosity grades output will further be compromised with the crude changeover. Global Group I bright stock prices have been trending higher this year as refinery closures and a heavy scheduled maintenance period has tightened availability considerably.
The closures included Italian integrated firm Eni 600,000t/yr Group I unit on 29 January 2024. Japanese refiner Eneos 360,000t/yr Group I
Wakayama plant in October 2023. This follows the closure of the company’s 210,000 t/yr Group I plant at its Negishi refinery in October 2022.
Argus-assessed average spot prices in the first six months of the year for European Group I bright stock export increased by 15% to $1,411/t compared to a year earlier. While bright stock prices on a fob Asia basis rose by 12% to $1,234/t over the same time period.
The Group I heavy to light grade price spread has also widened considerably by 18% for European export volumes and by 80% in Asia to $83/t and $244/t respectively.
Should feedstocks continue to shift to lighter, sweeter crude slates, spurred by US policy, heavy-grade supply will likely face further disruptions in the years ahead. This is expected to keep prices for those supplies firmer than usual.
argusmedia.com
Argus Base Oils Asia, Middle Argus Base Oils Asia, Middle
East & Africa Conference 13-15 October 2025 | Dubai, United Arab Emirates
Connecting Asia, the Middle East, and Africa to drive innovation in the base oils and lubricants industry
Connecting Asia, the Middle East, and Africa to drive innovation in the base oils and lubricants industry
Connecting Asia, the Middle East, and Africa to drive innovation in the base oils and lubricants industry
East & Africa Conference 13-15 October 2025 | Dubai, United Arab Emirates
East & Africa Conference 13-15 October 2025 | Dubai, United Arab Emirates
Book as a group to save up to 40% off standard rates!
Book as a group to save up to 40% off standard rates!
Book as a group to save up to 40% off standard rates!
Argus Base Oils Asia, Middle
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www.argusmedia.com/base-oils-conference-amea
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