Base Oil Prices Overview

Market Overview

Quarterly Update on Global Base Oil Market
For the Quarter Ending September 2020
Base Oil demand was stagnant due to weaker automobile growth in the North east and South East Asian countries. As the downstream automotive sector continued to perform lackluster, overall demand in Asia remained stagnant under gloomy economic conditions. Supply from South Korea remained constant as there were no major turnarounds in the country. However, imports from the Middle East remained restricted due to resumption of operations at lower refineries in China, which created ample product availability at competitive prices. Business activities which showed marked recovery during Q3 amid the news of vaccine roll-out by Q4 have created a positive sentiment in the regional market. This, backed by better prospects for crude oil helped producers in pushing pricing curve upwards. Base Oil Grade II H-100 was assessed at USD 525 per tonne, while Grade II H-70 was priced around USD 670 per tonne on CFR India basis. 
North America
Despite reduced refinery run rate, light viscosity Group I oil supply was sufficient for the contract customers. The Group II Base Oil demand was especially strong in export market during Q3 largely from emerging nations such as India and Brazil.  Group III supply was comfortable while suppliers were more focused on contract manufacturers created a tighter supply for spot buyers throughout the quarter. US base oil export prices gained unusually compared to the US domestic rates. 

Following severe drop in the demand in Q2, amidst stalling automotive industry, a substantial recovery in the product demand was observed at the beginning of Q3.  Though Group II demand was flat for most of the quarter, the demand of other base stock saw a firmed demand. Supply in September was tighter due to shortage in import from North America as an after of Hurricanes in the Gulf Coast. The demand for heavier grades was on a higher side compared to lighter grades. Output was increased by some blending units, as import disruption and maintenance is curbed by domestic supply to keep the market supported.  

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Market Analysis

Company-wise installed capacity, production volume and plant operating efficiency is captured directly from manufacturers. Import and Export volume is captured from government sources and demand for Acrylonitrile is calculated considering the production, import, export and inventory-levels on the country and regional level markets.

Pricing Analysis

Acrylonitrile price is correlated with the price trend of crude oil, demand-supply gap, Propylene and with movement across the downstream derivatives such as acrylonitrile-butadiene-styrene (ABS), styrene-acrylonitrile (SAN) etc.

Company Profile

Basic details and information on financial performance of leading global players in the Acrylonitrile market is presented in a visually captivating manner. Expansion plans and the company’s strategy is also captured to understand the vision and mission of the company to help understand the areas where companies need to focus more.

News & Deals

Daily updates on industry-specific and product-specific news, exclusive primary-based news capturing plant shutdowns/outages/closures, capacity expansions, operating rates, insights on demand-supply situation, awarding of technology licenses, new product launch and deals specifying mergers and acquisitions, strategic investments and disinvestments, to help players capitalize on market opportunity.


ChemAnalyst gathers information through primary research surveys conducted with various Base Oil manufacturers, spread across the domestic and international markets, suppliers and dealers/distributors to gain insights into value-chains and demand-supply scenario to assess the market situation. Thorough study of the company’s annual reports and secondary sources such as exhaustive search on credible paid databases, including our internal database is done to verify the information. All the collected information is analyzed, evaluated and presented in chronological order to depict a meaningful and clear picture of the concerned market.
Our dedicated team of industry experts comprehensively monitors and analyzes various aspects of the Global Base Oil market. The team analyzes various industrial segments, strategic viewpoints and provides an analysis of the industry’s performance in the long run. This would enable our clients in efficiently plan their future investments, mitigate risk, understand the cost dynamics and strike out a balance amidst market volatility.
Critical examination of the impact of COVID-19 pandemic on the global supply chains and shift in demand patterns with change in buying behavior of consumers across the globe.
Several ongoing development projects across industries are tracked, followed by the details of major projects in the development stage, which can positively or negatively influence Global Base Oil market.
Pricing is captured through exhaustive primary interviews with domestic and international manufacturers, traders and importers and customers on monthly and yearly basis.

Finally, region-specific markets for Base Oil are analyzed and region-wise demand pattern is tracked.


Base oil is the main component in the production of lubricants including greases, motor oil and processing fluids. They constitute around 90 percent in lubricants. The American Petroleum Institute (API) has categorized base oils into five categories. Group I, II and III are refined from crude. Group IV is based on polyalphaolefins base oils and are known as synthetic and remaining all are classified as group V. Group I Base Oils are solvent refined and contain high sulphur content and thus are the cheapest base oils in the market, Group II are widely used Base Oils in the market due to better antioxidant properties and are priced closed to Group I. Though made from crude oil, Group III Base Oils are sometimes known as synthesized due to severe hydrocracked process these are made to go through. The longer process is designed to achieve purer base oil. Group IV are made through process called synthesizing and have a broader temperature range and are used in extreme conditions. Group IV Base Oils are costlier than other three due to its increased properties. Group V Base Oils are all other Base Oils which include silicones, phosphate esters, polyalkylene glycol, polyester, biolubes, etc.