Base oils and waxes
Overview
As the world pivots towards decarbonisation, challenges and opportunities loom for base oils production and demand. Staying on top of this market is more important than ever to realise these opportunities and mitigate pricing risk.
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Latest base oils and waxes news
Browse the latest market moving news on the global base oils and waxes market.
US Group II base oil margins fall on weak demand
US Group II base oil margins fall on weak demand
Houston, 29 October (Argus) — US Group II base oil margins over feedstocks and competing fuels fell during the week ended 28 October as weak demand and increased surplus availability dropped spot prices. The Argus US domestic spot Group II N100 premium to four-week average low-sulphur vacuum gas oil (VGO) fell $1.37/USG, down from $1.39/USG the previous week. Margins also dropped below year-earlier levels of $1.45/USG. The Argus US domestic spot Group II N100 premium to four-week average US Gulf coast diesel slipped to $1.19/USG, down from $1.20/USG a week before. Margins remained above year-earlier levels of 72¢/USG. Domestic Group II mid- and high-viscosity prices declined on rising supplies and muted demand. Low-viscosity prices were steady as available re-refined grades counterbalance limited virgin Group II N100 supplies. Some market participants are hesitant to purchase surplus base oils as they try to maintain low inventory levels ahead of year-end taxes. Some of these participants are also seeing downstream customers working to draw down inventories. Four-week average feedstock VGO prices increased on limited supplies. Some of this upward pressure is being curbed by thin VGO demand because of weaker fluid catalytic cracker (FCC) margins. The low-sulphur VGO premium to four-week average WTI crude widened to $11.53/bl, up from $10.99/bl a week earlier. Weak competing fuel margins are still pushing more VGO toward base oil output. This has increased base oil supplies despite thinning seasonal demand. By Karly Lamm Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil's 3Q base oils output rises by 30pc
Brazil's 3Q base oils output rises by 30pc
Sao Paulo, 23 October (Argus) — Brazil's base oils production increased by 30pc in the third quarter from a year earlier, according to hydrocarbons regulator ANP. Output totaled almost 135,000 metric tonnes (t) in the latest quarter, up from 105,000t a year earlier. The monthly average over the last three months was 45,200t, higher than the 35,000t average registered in the same three months last year. Total base oils production year to date September this year reached nearly 430,000t, 15pc higher than the same nine-month period last year. The 239,000 b/d Reduc refinery, in southeastern Rio de Janeiro state, produced nearly 108,000t of base oils in the third quarter of this year, a 23pc hike from the same period last year, but an 11pc drop from the second quarter. The unit was responsible for 80pc of Brazil's total production over the last three months. Petrobras' 8,000 b/d Lubnor naphthenic base oils unit produced almost 12,800t, up by 13pc from the third quarter in 2023 and a 48pc hike from the second quarter 2024. The 300,000 b/d Mataripe refinery — owned by Acelen, the Brazilian refining subsidiary of Abu Dhabi's Mubadala — produced around 15,000t in April, double output from a year earlier, but a 6pc drop from the second quarter. By Julio Viana 3Q brazilian base oils production t Jan-Sep brazilian base oils production t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India’s lubricant consumption rises in September
India’s lubricant consumption rises in September
Singapore, 15 October (Argus) — India's lubricant consumption rose by 7.1pc on the year and by 2.5pc on the month to 364,000t in September, according to provisional oil ministry data. This likely came as demand picked up, especially since the monsoon seasonal lull ended in September. Lubricant consumption rose for two consecutive months in September, with consumption previously at its lowest level this year in July. Lubricant consumption rose by 12pc between January to September to 3.4mn t, outpacing demand in the same period last year, supported by economic growth. India's base oil import prices in September were largely lower for most grades, pressured by ample supply and weakness in crude and gasoil prices. But heavy-grade prices were supported because of tight supply. Group II N150 averaged at $810/t in September, a decrease of 3pc from a month earlier. Group II N500 averaged at $991/t cfr India in September, edging up around 1pc from the previous month. By Chng Li Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US Group II base oil margins, spot prices fell
US Group II base oil margins, spot prices fell
Houston, 8 October (Argus) — US Group II base oil margins over feedstocks and competing fuels fell during the week ended 4 October on lower base oil demand and higher feedstock costs. The Argus domestic spot US Group II N100 premium to four-week average low-sulphur (VGO) fell to $1.51/USG from $1.57/USG the prior week. Margins remained above year-earlier levels of $1.25/USG. The Argus domestic spot US Group II N100 premium to four-week average US Gulf coast diesel was $1.31/USG, down from $1.37/USG the prior week. Margins were above year-earlier levels of 51¢/USG. US Group II spot prices extended their fall amid growing supplies and weak demand. Some refiners have continued to release a portion of their hurricane inventories into the domestic spot market to avoid higher inventory costs at the end of the fourth quarter. This is lengthening the domestic Group II market as some refiners are working to limit offers into the lower-priced export market. Virgin Group II low-viscosity grades remain limited, but available re-refined grades are outweighing any upward price pressure from persistent supply tightness. Supplies of N220 are ample while N600 supplies are balanced-to-long. Four-week average feedstock VGO prices rose alongside higher crude values. The low-sulphur VGO premium to four-week average WTI crude widened to $9.48/bl from $9.18/bl last week. Weak competing fuel margins, especially for diesel, continue to incentivize refiners to direct more VGO toward base oil output. This has kept base oil production elevated despite thinner margins. By Karly Lamm Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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