Singapore base oil prices are declining in August 2025 due to plant restarts across Asia, a 4% drop in crude oil feedstock costs, and reduced export demand following a 25% US tariff. ExxonMobil has begun startup of its Singapore Resid Upgrade, adding 20,054 bbl/d of Group II base stocks, including the new EHC 340 MAX product, which may further pressure prices. While demand may rise later in Q3 due to seasonal lubricant needs, inquiries across Asia-Pacific are slowing. Group I supply remains tight despite recent turnarounds, though Japan plans to resume exports amid long-term refinery closures driven by green energy policies.
