European base oil prices retreated in mid-December 2025, weighed down by weak demand and ample supply while feedstock costs softened. Group I base oil continued to be pressured by an excess availability and disjointed supply throughout the world which meant there was little opportunity of exporting and suppliers were offering huge discounts in local sales. Prices of group II base oil softened as large import shipments landed from the US and the Asia Pacific, while the anticipated removal of EU import duties encouraged buyers to try to negotiate even lower levels. Germany FD Group II base oil Heavy 500 base oil price dropped by 3.4% in the first two weeks of December, capturing the downtrend. Group III base oil were the only fraction to exhibit relative strength, bolstered by demand for higher-specification lubricants, but expanding forward capacity is a threat. Falling prices for crude oil and feedstocks removed support from the cost side of the equation, deepening the slide in prices. The year-end holidays and finished lubricants demand is weak, the short-term aspect for European base oil prices will stay weak in January 2026.
