For the Quarter Ending September 2025
North America
• In United States, the Naphthenic Oil Price Index rose quarter-over-quarter in Q3 2025, influenced by rising costs and tightened supply.
• Naphthenic Oil production costs increased, driven by a 3.0% CPI in September 2025 and 2.6% PPI in August 2025.
• Industrial lubricant demand strengthened in Q3 2025, supported by investments in reshoring and automation initiatives.
• Naphthenic Oil demand outlook mixed; strong retail sales (5.42% September 2025) offset sluggish industrial production (0.1% September 2025).
• Regional Naphthenic Oil supply tightened in Q3 2025 due to unexpected plant disruptions and planned refinery turnarounds.
• Crude oil prices remained stable in Q3 2025; refinery margins for related petroleum products increased in September 2025.
• U.S. lubricant exports continued growth through August 2025, contributing to an expanded trade surplus for U.S. lubricants.
• Automotive lubricant demand softened seasonally in September 2025, reflecting declining consumer confidence (94.2 index September 2025).
Why did the price of Naphthenic Oil change in September 2025 in North America?
• Inflationary pressures from 3.0% CPI year-over-year in September 2025 increased Naphthenic Oil production costs.
• Regional supply tightened due to unexpected plant disruptions and refinery turnarounds throughout Q3 2025.
• Refinery margins for related petroleum products climbed in September 2025, impacting Naphthenic Oil input costs.
Europe
• In Germany, the Naphthenic Oil Price Index fell quarter-over-quarter in Q3 2025, driven by contracting industrial activity.
• Naphthenic Oil production costs eased as producer prices declined by 1.7% in September 2025 due to lower energy.
• Demand for Naphthenic Oil was dampened by a contracting Manufacturing Index in Q3 2025 and declining industrial production.
• Industrial production in Germany decreased by 1.0% in September 2025, reducing overall demand for raw materials.
• The Naphthenic Oil demand outlook remains subdued due to weak manufacturing output and declining new orders in September.
• Retail sales in Germany rose by 0.2% in September 2025, offering slight support for consumer-linked Naphthenic Oil uses.
• Crude oil prices declined in September 2025, contributing to lower energy feedstock costs for Naphthenic Oil production.
• German manufacturing export sales declined in August and remained largely unchanged in September 2025.
Why did the price of Naphthenic Oil change in September 2025 in Europe?
• Lower producer prices, down 1.7% in September 2025, reduced Naphthenic Oil production costs.
• Contracting Manufacturing Index in Q3 2025 and declining industrial production dampened Naphthenic Oil demand.
• Crude oil prices declined in September 2025, easing feedstock expenses for Naphthenic Oil manufacturers.
APAC
• In China, the Naphthenic Oil Price Index fell quarter-over-quarter, due to contracting manufacturing and weak industrial demand in September 2025.
• Naphthenic Oil production costs remained stable in Q3 2025, as crude oil prices fluctuated and global supply strengthened.
• China's industrial production increased 6.5% year-on-year in September 2025, supporting Naphthenic Oil demand.
• Retail sales grew 3.0% year-on-year in September 2025, boosting Naphthenic Oil demand in consumer applications.
• Automotive production and sales maintained strong year-on-year growth throughout Q3 2025, especially for New Energy Vehicles.
• Deflationary CPI at -0.3% and PPI at -2.3% in September 2025 indicated weak consumer and industrial pricing power.
• The Manufacturing Index was contracting in September 2025, signaling reduced new orders and industrial activity.
• Global observed oil inventories, including Chinese crude stocks, increased through Q3 2025, reaching a four-year high.
• Low consumer confidence in September 2025 suggested pessimism, dampening discretionary spending and related demand.
Why did the price of Naphthenic Oil change in September 2025 in APAC?
• Weak consumer demand, with -0.3% CPI year-on-year in September 2025, reduced end-product purchases.
• Contracting Manufacturing Index in September 2025 signaled reduced industrial activity and lower raw material demand.
• Increased global crude oil supply and stable prices in Q3 2025 eased Naphthenic Oil production costs.