INSIGHT
Sophie Udubasceanu, Senior Editor, Base Oils, Europe
Base Oil Report
Europe Group I spot values kicked off the new year at a steady pace on lacklustre activity, dampened by public holidays in some European countries at the start of January. Group II demand was slow to emerge in the new year, though restocking in January may help trigger some buying appetite. Group III ranges rolled over mid-January, with supply showing signs of tightness especially on 4cst. Group I export demand was limited so far, met with sufficient supply. The festive period hindered spot trading in the second half of December. Participants weighed up the events in Venezuela with any potential impact expected to be indirect via crude oil prices or via currency exchange rates.
US
US base oils spot prices were mostly steady mid-January, with some weakness on the heavier Group III’s 6cSt and 8cSt. Healthy supply lingered, with excess managed through exports. Domestic buyers remained committed to lean inventories, purchasing only what is needed and being well covered with contractual volumes. Upstream price pressure remains limited. Despite, the US military operation to remove Venezuelan President Nicolas Maduro, an immediate recovery for Venezuela’s crude industry appears unlikely even with the prospect of investment from US oil majors.
Asia Group I supply and demand balance diverged across the Asian region. Healthy inventories were observed in India countered by a lack of buying interest, while demand in China increased amid restocking ahead of the Lunar New Year, and Korean refiners have yet to issue February offers. Demand for heavy and extra-heavy grades was lower. Group II supply showed signs of length with February-loading discussions set to pick up as the market returns from the holiday period. Group III sentiment was largely unchanged
with limited spot activity, though bulk deals for South Korean-origin 4cst and 6cst were finalised, with the material heading to China.
Middle East Group I was under pressure amid improved availability from Iran and soft demand, with heavier grades seeing more pronounced weakness, compounded by an undercurrent of Group II heavy-grade supply glut. Thin trading activity persisted towards the end of 2025.
Group II supply balances remained limited for light-grade base oils, in contrast with length in heavy-grade material. In early January, refiners have not yet fully ramped up sales in full swing, with a slower return from holidays. Soft demand persisted in the UAE amid ample onshore material and thin trading during the festive period. Group III observed balanced fundamentals, with sufficient availability for export cargoes. Exports towards India tapered off late December as the buying cadence slowed down towards the end of the year.
icis.com
LUBE MAGAZINE NO.191 FEBRUARY 2026
65
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68
