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.
Base oils market participants trust Argus to help them stay up to date on the latest developments and implications for their markets. Whether referring to our spot price assessments or attending our conferences, our insights keep you ahead of the curve.
Our base oils and waxes market intelligence includes weekly global price and market reports, price forecasts and outlooks, as well as conferences and networking events.
Latest base oils and waxes news
Browse the latest market moving news on the global base oils and waxes market.
Singapore’s base oil imports edge up in February
Singapore’s base oil imports edge up in February
Singapore, 1 April (Argus) — Singapore's base oil imports increased for the third consecutive month in February, GTT data show, supported by stable demand in the city state. Import growth slowed in February, in line with a drop in industrial performance. The country's manufacturing output fell by 1.3pc on the year, and by 7.5pc on a seasonally adjusted month-on-month basis, according to data from the Economic Development Board. The overall manufacturing sector grew for the 18th consecutive month, but PMI slipped from 50.9 to 50.7 in February, data from the Singapore Institute of Purchasing and Materials Management show, in line with growing uncertainties over global trade flows. A PMI reading above 50 indicates expansion. Supplies from South Korea recovered from January's five-month low, in line with higher exports from the northeast Asian country, but remained below the five-year monthly average of 12,300t. Lower South Korean volumes were balanced by higher receipts of Taiwanese cargoes, which were likely boosted by delays in customs clearance a month earlier. South Korea and Taiwan are major producers of Group II base oils. Zero imports were recorded from Japan for the third consecutive month. Exports from the Group I supplier have fallen ahead of a series of plant maintenances by Japanese refiners ENEOS and Idemitsu that will affect around 925,000t/yr of refining capacity over February-November. Increased Saudi Arabian cargoes made up for the shortfall in Japanese volumes, with imports recorded for the 10th consecutive month. Saudi Arabia produces Group I and II base oils, but supplies to Singapore likely comprise of mainly Group I volumes because of the regional shortage from permanent plant closures in Japan. By Tara Tang Singapore's base oil imports t Feb'25 m-o-m ± % y-o-y ± % Jan-Feb'25 y-o-y ± % Qatar 23,135.0 -12.2 22.6 49,488.0 74.2 South Korea 9,090.0 30.2 -18.2 16,074.0 -9.3 Taiwan 12,458.0 NA 825.6 12,458.0 119.0 Saudi Arabia 5,306.0 76.9 5.7 8,306.0 65.5 Thailand 5,046.0 -16.4 152.8 11,081.0 234.3 Total 77,915.0 1.9 75.7 154,392.0 129.6 Source: GTT Total includes all countries, not just those listed Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US base oil export fell nearly 10pc in Dec
US base oil export fell nearly 10pc in Dec
Houston, 28 March (Argus) — December US base oil and lubricant exports fell nearly 10pc from year-earlier levels on lower supply and more attractive domestic pricing. The decline in export volumes was driven by weaker demand in Europe as buyers there worked to draw down inventories. Demand also fell in Brazil as a key domestic producer lowered its prices. Several US refiners were uninterested in lowering base oil prices to sell into the export market in December. Multiple turnarounds and less light-grade supplies made inventory building more attractive. Other refiners exported higher volumes in November in preparation for tax assessment season in the end of December. Exports to Mexico were the highest on record for the month of December and the second highest monthly total for 2024. Base oil exports to West coast South America fell for a third consecutive month on muted buying interest because of sufficient domestic supplies. By Karly Lamm Dec US base oil exports unit 24-Dec m-o-m ± % y-o-y ± % Mexico 1,990,000 13.1 13.2 Brazil 195,000 -26.7 -70.0 India 118,000 -8.5 -4.8 Europe 326,000 5.2 -43.4 WSCA 169,000 -41.9 11.0 Monthly total 3,848,000 -1.0 -9.9 Energy Information Administration (EIA) *Total includes all countires, not just those listed *WCSA includes Chile, Ecuador and Peru *Europe includes Belgium, France and the Netherlands Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Rising base oil margins could push output up
Rising base oil margins could push output up
London, 25 March (Argus) — Base oil premiums to feedstock vacuum gasoil (VGO) in Europe are holding firm, which could push refiners in the region to favour base oils production over diesel. The Argus-assessed European Group I domestic SN 150 spot price premium to vacuum gasoil (VGO) 2pc northwest Europe on a fob basis hit $327.28/t last week, compared with a diesel to VGO premium of $108.38/t in the same period. The differential between the base oil premium to VGO and diesel to VGO has held at well over $100/t since the start of February, which could start incentivising more base oil output. Refiners typically start prioritising base oil production over diesel when the differential between the base oil and diesel premiums to VGO holds at $100/t or above for a period of time, especially when VGO feedstock prices rise. Supplies of VGO, diesel and base oil have tightened because of sanctions on Russian products, with refiners relying on other importers further afield for VGO, which has supported prices. VGO arrivals in Europe fell by 36pc from 2021 to 7mn t in 2024, Vortexa data show, with monthly VGO arrivals dwindling further from last November to February. European VGO premiums to Ice Brent crude futures have more than doubled from $6.50/bl to $14/bl on a cif ARA basis. As well as feedstock availability constraints, weaker buying interest for diesel, in contrast to firming base oil demand, is another factor that could push refiners to prioritise base oil production. Consumers switching to gasoline, hybrid and electric vehicles and a weakening European industry is weighing on diesel demand across the region. And diesel margins to VGO could come under further pressure from higher diesel imports in Amsterdam-Rotterdam-Antwerp (ARA) in March, supported by more tankers taking the Red Sea route and the end of refinery maintenance season. This could contribute to make base oils margins more attractive to European refiners. But Yemen-based Houthi forces have said that they will restart attacks on commercial shipping, prompting some clean tankers to divert away from the Red Sea route. This could support diesel prices and margins should supplies tighten again, and turn European refiners' focus back to diesel production over base oils. But over the last decade an estimated 55pc of European Group I nameplate capacity has been cut, creating a structurally short market. And last year saw the closure of Eni's 600,000t/yr Livorno refinery , further cutting supplies, boosting spot prices and incentivising producers to increase output. By Christian Hotten, Josh Michalowski and Isabella Reimi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
India's base oil imports rise in 2024
India's base oil imports rise in 2024
Singapore, 18 March (Argus) — India's base oil imports rose by 15pc on the year to 2.71mn t in 2024, data from GTT show. Lower domestic production, because of plant maintenance, and higher finished lubricant consumption boosted imports in 2024. Consumption of lubricant and grease increased by 8pc on the year to 4.44mn t in 2024, oil ministry data show. India's base oil imports fell by 19pc on the year to 201,734t in December 2024. Lower-than-expected demand at the end of the year, owing to slowing economic growth in India, likely caused the decline. Base oil imports in December were largely stable as compared with the previous month. South Korea remains the top supplier to India, with imports exceeding 1.15mn t in 2024, a 27pc increase from the previous year. But imports from South Korea dropped by 28pc on the year to 82,989t in December because of reduced supply, with a key refiner having maintenance in the fourth quarter of 2024. Imports from Singapore and Taiwan increased by 25pc and 28pc respectively in 2024. Asian suppliers are diverting supply to other markets with falling demand from China. The Mideast Gulf remains a key supply region, supplying close to a quarter of India's imports in 2024. Saudi Arabia and the UAE are among top suppliers. By Chng Li Li India base oils imports unit Dec'24 m-o-m ± % y-o-y ± % Jan-Dec 24 y-o-y ± % South Korea 82,989 -9.7 -27.5 1,150,234 27.1 Singapore 41,656 129.7 69.4 399,599 25.1 Saudi Arabia 25,738 18.7 20.1 251,387 -9.0 UAE 17,198 -38.2 -30.3 266,178 18.1 Taiwan 14,221 9.4 213.7 115,877 28.0 Monthly total 201,734 -0.4 -18.8 2,713,623 14.6 Source: GTT Total includes all countries, not just those listed Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Spotlight content
Browse the latest thought leadership produced by our global team of experts.
Explore our base oils and waxes products
Regular price and market insights, from spot prices to forecasts, for the global base oils and waxes markets.
Key price assessments
Argus prices are recognised by the market as trusted and reliable indicators of the real market value. Explore some of our most widely used and relevant price assessments.
Related events
