Base Oil Prices

Base Oil Price Trend and Forecast

Track the latest insights on base oil price trends and forecast with detailed analysis of regional fluctuations and market dynamics across Europe, North America, Middle East & Africa, Asia Pacific, and Latin America.

Base Oil Prices Q4 2024

During the last quarter of 2024, the base oil prices in the USA reached 1667 USD/MT in December. As per the base oil price chart, the market was rather stable, however there were slight price drops due to the poor demand from the lubricant industry. Before the hurricane season, suppliers secured barrels in advance, resulting in well-stocked October supplies. Notwithstanding market prudence, November's limited spot sales guaranteed enough supply.

During the last quarter of 2024, the base oil prices in Singapore reached 783 USD/MT in December. As per the base oil price chart, due to an oversupplied market and poor lubricant demand, Singapore's market saw falling prices. Despite plant closures, October had a consistent supply, while November's decline in the price of crude oil lowered production expenses. Due to weak downstream demand, both domestic and foreign suppliers quickly purged stocks by December.

During the last quarter of 2024, the base oil prices in the Netherlands reached 963 USD/MT in December. The market declined before leveling out. Despite mild supply delays brought on by unfavorable weather in October, overall availability was adequate. Despite low lubricant demand, ExxonMobil's November inventory update allayed supply fears and maintained price stability. Production expenses decreased when the price of crude oil dropped. As suppliers cleaned their stockpiles ahead of the holiday shutdowns in December, market activity slowed at the end of the quarter, leading to additional price reductions.

During the last quarter of 2024, the base oil prices in Saudi Arabia reached 1652 USD/MT in December. The market fluctuated, first declining and then stabilizing. Despite exports being impacted by regional crises, October was stable. By November, expenses were under pressure to decline due to a sufficient supply and falling crude oil prices. Suppliers actively changed prices in December in order to get rid of goods before the end of the year. Businesses temporarily reduced operations during the Christmas and New Year holidays, which further hindered market activities.

Base Oil Prices Q3 2024

The base oil prices in the United States for Q3 2024 reached 17,156 USD/MT in September. The region remained steady, with balanced supply and demand supporting price stability. Temporary disruptions and demand upticks in July were offset by reduced lubricant market demand in September. Suppliers’ price adjustments reflected a resilient yet cautious market stance.

The price trend for base oil in Singapore for Q3 2024 settled at 860 USD/MT in September. The market is driven by oversupply and weaker demand from the lubricant sector. Seasonal monsoon patterns and logistics challenges discouraged imports, favoring local supply. This cautious purchasing environment contributed to sustained price declines and a subdued market sentiment.

In Netherlands, the base oil prices for Q3 2024 reached 1,045 USD/MT in September. The market experienced stable base oil prices, supported by improved supply and lower crude oil costs. Seasonal market activity slowed during the summer, while earlier shipping disruptions eased by September. The market reflected resilience, maintaining equilibrium despite external challenges.

The price trend for base oil in Saudi Arabia for Q3 2024 settled at 1,760 USD/MT in September. The market exhibited stability as supply challenges and strong demand supported bullish pricing in July, while summer slowdowns in August tempered the trend. Saudi Arabia’s steady demand and limited supply highlighted a consistent pricing environment.

Base Oil Prices Q2 2024

The base oil prices in the United States for Q2 2024 reached 1,732 USD/MT in June. The region saw price hikes due to rising crude costs and geopolitical instability. Refiners increased production to meet seasonal and industrial demands. Strategic inventory building prior to hurricane season and price adjustments by major players reflected a bullish market environment.

The price trend for base oil in China for Q2 2024 settled at 818 USD/MT in June. The market witnessed strong price growth due to supply shortages and heightened demand from the automotive and manufacturing sectors. Operational disruptions and geopolitical issues compounded the situation, while strategic purchasing patterns maintained upward momentum, showcasing robust market dynamics despite prevailing challenges.

Base Oil Prices Q1 2024

The price trend for base oil in Germany for Q1 2024 settled at 1,061 USD/MT in March. The market faced subdued demand and logistical delays, particularly through the Suez Canal. Buyers shifted to spot purchases, limiting market activity. While crude oil values offered some stability, prices declined significantly due to weak lubricant demand across industrial and automotive sectors.

Base Oil Prices Q4 2023

The base oil prices in the United States for Q4 2023 reached 1576 USD/MT in December. The market was volatile during the quarter, starting with high prices due to tight supply but concluding with significant price reductions from major producers like Chevron and Motiva, influenced by a strategic reduction of year-end inventories.

The price trend for base oil in China for Q4 2023, reached 800 USD/MT in December. The market saw prices for Group I increase in October, with overall stability in Group II oils. The market reflected a weak correlation with crude oil prices, showing a slight increase towards the end of the quarter, influenced by varied demand across different oil grades.

The price trend for base oil in Saudi Arabia for Q4 2023, reached 1405 USD/MT in December. The market in Q4 2023 was marked by an abundant supply, keeping prices stable despite increased exports. However, December saw a strategy shift as traders reduced prices to clear stock, aligning with global market trends and resulting in a noticeable price decrease for Group III base oil.

Regional Coverage

The report provides a detailed analysis of the base oil market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the base oil price trend.

Global Base Oil Price Trend

The report offers a holistic view of the global base oil pricing trends in the form of base oil price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights the current price but also provides insights into base oil historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into base oil price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed base oil demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Base Oil Price Trend

Q4 2024:

As seen in the base oil price index, through the final quarter of 2024, the price of base oil in Europe showed a declining trend before stabilizing. Although exports were hindered by severe rains, October remained stable in Germany. As companies modified their tactics to overcome logistical obstacles, supply levels stayed sufficient. Production costs were further reduced by declining crude oil prices. Due to prolonged operating pauses between Christmas and New Year's, suppliers had to modify pricing in December to clear stockpiles before the holiday season, which resulted in lower market activity.

Q3 2024:

During Q3 2024, the market in Europe experienced price stability, driven by balanced supply-demand dynamics and improved inventory levels. Disruptions earlier in the year, including shipping delays and strikes, moderated by September, contributing to steadier conditions. Seasonal slowdown during the summer saw reduced market activity, as many participants paused operations. However, the base oil market remained resilient despite high shipping costs and earlier disruptions in supply chains. Lower feedstock crude oil costs toward the end of the quarter also supported a stable pricing environment, reflecting an equilibrium in the market.

Q2 2024:

During Q2 2024, the market in Europe experienced an upward price trajectory despite periods of stabilization. Seasonal events like Easter and Ramadan initially reduced trading activity, leading to temporary bearish trends. However, base oil demand surged in May and June due to increased lubricant needs during the summer driving season. Germany saw significant price fluctuations, reflecting heightened operational costs and constrained supplies. Although imports and resumed local production offered some stability, the overall market environment was bullish. Seasonal factors and logistical challenges supported a predominantly positive pricing trend for the quarter.

Q1 2024:

During Q1 2024, the Europe market faced muted activity due to low demand from key sectors, including automotive and industrial lubricants. Logistics challenges, including delays in the Suez Canal and Red Sea transit routes, further dampened trading sentiment. Buyers increasingly opted for spot purchases over long-term contracts, contributing to subdued base oil activity. Germany experienced notable price changes, influenced by lower demand and logistic bottlenecks. Although crude oil values offered some support, overall market sentiment remained restrained. The quarter highlighted a delicate balance between supply constraints and weakening demand.

Q4 2023:

The market exhibited a robust upward trend in Q4 2023 despite a seasonal slowdown in demand. High inventory levels and a reduction in production elsewhere sustained a high supply throughout October. A notable price increase initiated by ExxonMobil in November pushed prices to unprecedented levels in Belgium, Germany, and Netherlands. The market adapted by shifting from short-supplied API Group I grades to readily available light Group II oils, complemented by increased imports, which further supported the market’s dynamics and led to an overall price increase compared to the preceding quarter.

This analysis can be extended to include detailed base oil price information for a comprehensive list of countries.

North America Base Oil Price Trend

Q4 2024:

With a little price decline in the last quarter of 2024, the North American base oil market remained stable, mostly as a result of lubricant producers' muted demand. As providers had built up stocks before hurricane season in anticipation of better prices upon release, stockpiles were adequate in October. Nevertheless, despite price changes, there was little substantial gain in sales because of the year-round decline in demand. After hurricanes, producers became more cautious, which resulted in spot sales that were regulated to guarantee sufficient supplies.

Q3 2024:

Throughout the third quarter of 2024, the North American market displayed a steady performance. Demand increased in July, pushing suppliers to utilize reserves while stable-to-pressured supply conditions ensured price stability. Anticipation of the hurricane season and unplanned production halts added pressure to supply chains. A slight decline in prices emerged in September due to reduced demand from downstream lubricants, with major suppliers adjusting their pricing accordingly. Despite these shifts, the base oil market maintained overall resilience through the quarter, reflecting stable supply-demand dynamics and prudent inventory management.

Q2 2024:

Throughout Q2 2024, the North American market was marked by rising prices fueled by escalating crude oil costs and ongoing geopolitical disruptions. Refiners ramped up production to meet growing demand, leading to significant output increases. Major players in both paraffinic and naphthenic markets adjusted prices to manage profitability, further intensifying the bullish trend. Seasonal factors, including hurricane preparedness and heightened summer driving activity, contributed to robust inventory building. These dynamics underscored strong base oil fundamentals, with the quarter reflecting an overall positive pricing environment amidst supply chain challenges and increased operational costs.

Q1 2024:

During Q1 2024, the North American market experienced a mix of challenges. Seasonal demand fluctuations and reduced industrial activity in January led to surplus inventory and a saturated market. Prices fluctuations in crude oil further pressured the market, resulting in lower prices initially. However, the latter part of the quarter saw a price rebound driven by supply constraints caused by unexpected shutdowns. Despite these disruptions, moderate demand persisted, stabilizing the base oil market by quarter-end. The US market, in particular, experienced volatility, reflecting the interplay between constrained supply and fluctuating demand dynamics.

Q4 2023:

The market saw notable fluctuations influenced by a tight balance between supply and demand of Group I and II grades. October experienced a rise in prices, primarily driven by these supply constraints. Following a price hike in the previous months, independent lubricant producers also raised their prices in November. Despite a slowdown in demand toward December as companies sought to reduce inventories, prices initially rose. The year closed with Chevron and Motiva lowering their prices, reflecting a shift from a bullish to a bearish trend in the market.

Specific base oil historical data within the United States and Canada can also be provided.

Middle East and Africa Base Oil Price Trend

Q4 2024:

In Q4 2024, the base oil market experienced a volatile environment, first experiencing a decline and then stabilizing. Saudi Arabia's market held constant in October, however overall stock levels were still sufficient despite supply chain interruptions brought on by regional conflicts that affected exports. Prices declined in November due to decreased demand from the lubricant industry and reduced prices for crude oil. Suppliers aggressively lowered prices as December went on in order to get rid of inventory before the new year.

Q3 2024:

During Q3, the Middle East and Africa market was marked by stable pricing and periodic upward trends. Supply constraints, logistical issues, and elevated crude oil costs sustained bullish pricing in July. Shipping challenges, particularly in the Red Sea, added further complexities, driving higher transportation costs. However, the market experienced stabilization by August, aided by seasonal slowdowns. In Saudi Arabia, steady demand and limited availability contributed to price resilience, reflecting the region's ability to maintain equilibrium in a challenging supply environment. Overall, the base oil market demonstrated consistent stability throughout the quarter.

Q2 2024:

During Q2, the Middle East and Africa market prices surged due to supply chain disruptions, growing freight rates, and geopolitical challenges. Post-Ramadan, trading activity rebounded as lubricant blenders replenished stocks to meet increased demand. Saudi Arabia faced notable supply pressures, exacerbated by shipping issues caused by Red Sea attacks and extended transit routes. Major producers like Luberef encountered logistical challenges, impacting the availability of key grades. The combination of heightened demand, limited supply, and geopolitical tensions sustained an upward trend, highlighting the region’s complex base oil dynamics during the quarter.

Q1 2024:

During Q1, the Middle East and Africa market saw a stable yet bullish trajectory. Shipping disruptions in the Red Sea and Suez Canal significantly impacted logistics, driving up transportation costs and causing delays. In the second half of the quarter the base oil market shifted as Ramadan approached, compounding supply challenges with reduced deliveries and cancellations of Saudi cargoes. Ports across the UAE faced shortages, with limited vessels navigating the unstable Bab-al-Mandeb Strait. Despite these obstacles, key players like Luberef maintained regular shipments to meet regional demand, underscoring resilience amid logistical hurdles.

In addition to region-wise data, information on base oil prices for countries can also be provided.

Asia Pacific Base Oil Price Trend

Q4 2024:

Through the fourth quarter of 2024, the price of base oil gradually decreased due to a variety of market factors. Due to low lubricant demand, availability was adequate in October despite multiple plant shutdowns. Chinese consumers partially restocked their stores following the National Day holidays, but the slump was further exacerbated by the fact that many chose local products due to import fears. A pessimistic market attitude resulted from further reductions in production costs in November due to declining crude oil prices. Slow lubricant consumption continued to affect procurement activities, and as December came to an end, both domestic and import suppliers increased inventory clearing.

Q3 2024:

In the Asia Pacific region, base oil prices declined in the third quarter due to oversupply and weaker demand from the lubricant sector. Seasonal factors such as the monsoon reduced buying activity, while high production rates exacerbated the supply-demand imbalance. Logistics challenges, including port congestion, further discouraged imports, favoring local sourcing due to cost advantages. Purchasers adopted a cautious approach, leading to a surplus in inventory and sustained price pressure. The Singapore market mirrored this trend, with pricing reflecting the muted market sentiment and subdued trading activity throughout the quarter.

Q2 2024:

In the Asia Pacific region, the market recorded a notable price surge in Q2 2024, driven by tight supply and strong downstream demand. Maintenance shutdowns and disturbances at key production facilities strained supply chains, while industries like automotive and manufacturing heightened their procurement activities. Geopolitical uncertainties and logistical barriers further deepened the supply-demand imbalance, driving bidding competition. China emerged as a key market, experiencing sharp price escalations due to its growing demand and cautious purchasing patterns. The quarter’s overall base oil market sentiment remained optimistic, supported by robust industrial activity and constrained supplies.

Q1 2024:

In the Asia Pacific region, the base oil market remained stable in Q1 2024, with factors like softened demand and freight bottlenecks shaping market dynamics. A surplus emerged in January due to reduced consumption, while high transportation costs contributed to pricing pressures in February. Demand briefly rose during China’s Lunar New Year preparations, supporting slight price increases for heavy-grade oils in March. Maintenance shutdowns at facilities like Shandong Jincheng Petrochemical further tightened supply and influenced price movements. Despite these disruptions, the region maintained overall market stability through strategic inventory management and cautious procurement practices.

Q4 2023:

The region experienced a varied market situation in Q4 2023, starting strong in October and November but declining in December. In China, prices for Group I SN Base Oil rose in October, while Group II prices remained stable. Demand fluctuated, with an uptick in Group I SN consumption but a slowdown for Group II by year's end. The minimal correlation between base oil and crude oil prices indicated a unique market behavior in China, despite a general rise in prices towards the quarter's end.

This base oil price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Base Oil Price Trend

Latin America's base oil market is predominantly influenced by its rich natural reserves, particularly in countries like Chile and Brazil. However, political instability and inconsistent regulatory frameworks can lead to significant volatility in base oil prices. Infrastructure challenges and logistical inefficiencies often impact the supply chain, affecting the region's ability to meet international demand consistently. Moreover, the base oil price index, economic fluctuations, and currency devaluation are critical factors that need to be considered when analyzing base oil pricing trends in this region.

This comprehensive review can be extended to include specific countries within the region.

Base Oil Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Base Oil Prices, Trend, Chart, Demand, Market Analysis, News, Historical and Forecast Data Report 2025 Edition,” offers an in-depth analysis of base oil pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of base oil at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of base oil price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing base oil price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Base Oil Industry Analysis

The global base oil industry size reached 33.9 Million Tons in 2024​. By 2033​, IMARC Group expects the market to reach 40.2 Million Tons, at a projected CAGR of 1.90% during 2025-2033​.

• The increasing utilization of base oil as a lubricant in the automotive sector is a major factor driving the market growth. According to the IMARC Group, the global automotive lubricants market size is expected to reach US$ 104.7 Billion by 2032, exhibiting a growth rate (CAGR) of 3.1% during 2024-2032.
• The market share is also expanding due to base oil's increased demand as an essential lubricant in various industrial applications, including manufacturing, construction, and transportation.
• In addition, rapid advancements in manufacturing processes, machinery design, and engineering solutions, favoring the development of equipment that requires specialized lubricants, are fueling the market growth.
• Another factor driving base oil consumption across the globe is the growing government support that promotes fuel economy and emissions reduction. For instance, the Government of India (GoI) implemented the Ethanol Blended Petrol (EBP) Programme, wherein Oil Marketing Companies (OMCs) sell petrol blended with ethanol up to 10%.
• The market share is also expanding due to base oil's increased demand in the formulation of functional fluids for specialized industries, such as aerospace, marine, and renewable energy.
• Moreover, trade agreements and initiatives that reduce trade barriers and promote market access are facilitating the flow of base oils and lubricants across borders.
• Energy efficiency initiatives across industries that drive the demand for lubricants that help reduce friction, minimize wear, and improve overall equipment performance are boosting the adoption of high-quality base oils due to their superior lubricating properties.

Base Oil News

The report covers the latest developments, updates, and trends impacting the global base oil industry, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in base oil production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the base oil price trend.

Latest developments in the base oil industry:

• In July 2023, Chevron started the production of 4 centistoke API group III base oils at its refinery in California. This move will help the company accommodate growing demand for this category while lowering dependence on imports.
• In September 2023, PETRONAS signed a joint study agreement (JSA) with PT Kilang to develop new greenfield lube base oil in Refinery Unit (RU) IV Cilacap, Central Java.

Product Description

Base oil is a blend stock that is used in the manufacturing of lubricants and oils. It acts as the underlying fluid framework, to which additives and enhancers are added to produce finished lubricants. Base oil is obtained by refining crude oil, while synthetic base oils are manufactured by chemical synthesis.

Base oil exhibits distinct features that affect the performance of the finished lubricant product, including viscosity, oxidation stability, pour point, and heat stability. They are employed in a wide range of applications, including motor oil, gear oils, hydraulic fluids, greases, metalworking fluids, and for the production of industrial oils, cosmetics, and medicines.

Base oils provide various advantages, including minimizing friction, guarding against wear, prolonging equipment life, increasing energy efficiency, assuring system dependability, and preserving cleanliness and operating integrity under harsh environments. They also improve lubricant performance, extend oil life, provide superior protection at high and low temperatures, promote environmental compliance, and are compatible with a variety of additives.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of base oil pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting base oil price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The base oil price charts ensure our clients remain at the forefront of the industry.