Base Oil Price Trend and Forecast

Base Oil Regional Price Overview

Get comprehensive insights into the Base Oil market, with a focused analysis of the Base Oil price trend across Asia, Europe, North America, Latin America, and the Middle East & Africa.


Base Oil Price Trend for the Q1 of 2024

Product Category Region Price Time Period
Base Oil Chemical USA USD 1482/MT March’24
Base Oil Chemical Europe USD 1130/MT March’24

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Asia's base oils demand set an optimistic tone in the first quarter of 2024 as it rose with the seasonal increase in lubricant consumption in the region. Initially, the traders offered the commodity at discounted prices to boost consumption activities. However, this discount was narrowed in the later months, resulting in a slow and gradual rise in the prices of base oil. China's domestic prices for base oils remain steady, indicating steady demand, particularly for heavy-grade oils.

Base Oil Price Chart

Base Oil Price Trends and Forecast

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Singapore's base oils exports to China also remained stable, indicating cautious buying in China and cautious sales from Asia. Additionally, Singapore's exports to Southeast Asia have risen, highlighting the rise in the consumption activities and export of the region to multiple major markets. In India, demand was somewhat stagnant as the country had yet to offer base oil at reasonable prices in order to sustain the competition. However, the domestic consumption made up for the export loss, and thus, the Indian traders were reluctant to reduce their price quotations of base oil.


The European countries struggled to maintain the pace of base oil prices set by the previous quarters as through January and February, the pricing trajectory followed a gradual declining pattern. These meek sentiments of the market were a result of an increase in the number of sanctions on Russian imports and the divergence of the consumer base to other alternative options amid the rising constraints on the supply chains. Another change in the landscape was that the European producers were also emphasizing alternative fuel options, such as diesel, etc., to sustain their profit margins.

Further, the Turkish imports moved towards Russian suppliers as they competitively arranged their pricing quotations in order to gain an advantage in the global markets. Further, the rise in instances of Houthi attacks on overseas shipments arriving through the Red Sea route has increased the delivery time and reduced the interest of overseas players in the European base oil market, resulting in the downfall of the base oil price trend in the first quarter of 2024.

North America

During the first quarter of 2024, the US base oil market stabilized amid ongoing negotiations and uncertainty about demand. The price increases announced by major players like ExxonMobil and Paulsboro initially led to a rise in base oil prices. Additionally, factors such as rising crude oil prices, supply constraints due to several plant shutdowns, disruptions in shipping routes, and limited vessel space also contributed to the inclination in base oil price trends. However, despite the approaching spring season, demand for base oil has not surged as expected, leading to questions about proposed price hikes. Many suppliers are adopting a wait-and-see approach, delaying price changes until market conditions are clarified.

Analyst Insight

According to Procurement Resource, the price trend of Base Oil is expected to grow by significant margins in the forthcoming quarters as the Asian and North American markets are estimated to raise their procurement rates in the upcoming spring season.

Base Oil Price Trend for the Q4 of 2023

Product Category Region Price Time Period
Base Oil Chemical USA 1460 USD/MT Dec-2023
Base Oil Chemical USA 1528 USD/MT October’23
Base Oil Chemical Europe 917 USD/MT Dec-2023
Base Oil Chemical Europe 943 USD/MT October’23

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Base oil price trends continued along similar lines as they were in the previous quarter. Asian markets were largely stable, with barely any major fluctuations in the price graph during the final quarter of the year 2023. Unrestricted availability of the feedstock crude oil ensured uninterrupted supplies while the demands were also regular and consistent. The market sentiments were positive for the most period as the little fluctuations in the price curve were mostly positive. The major section of sales came from the rubber and engine oil industries. The supply and demand dynamics were mostly stable, with a little tilt towards the rising side. Overall, the base oil market trends were observed to be buoyant and floating firmly throughout the said period of Q4’23.


The European base oil market, too, oscillated within very confined limits. The market exuded borderline stability during the concerned period of Q4’23. However, because of existing inventory stocks, the average monthly prices for base oil slid slightly by about 2% by the end of the quarter. The monthly average prices for SN 150 type base oil stood at around 943 USD/MT (FD NWE) in October’23 and shifted to around 917 USD/MT by December ’23. Overall, mixed market sentiments were observed.

North America

The North American base oil market replicated the base oil price trends from the European markets. Industrial activities took a hit in the region because of the economic uncertainties, owing to which the market demands suffered slightly in the region. Though within the narrow boundaries, the prices were found to be wavering at the lower end of the scale. The base oil prices went from around 1528 USD/MT (FOB, Texas) in October’23 to around 1460 USD/MT in December’23.

Analyst Insight

According to Procurement Resource, given the current market dynamics and the inventory situation, the Base Oil prices are likely to continue to fluctuate in a similar manner in the coming months as well.

Base Oil Price Trend for the Q3 of 2023


The base oil price trend showcased a slacked movement in the third quarter of 2023. The Asia-Pacific's base oil regional prices suffered from the onset of the holiday season in China, which led to the slowing down of the momentum of downstream industries. Throughout the majority of the quarter, the base oil price trajectory seemed to struggle with feeble support from the downstream and feedstock sectors and the excess influx of Russian imports. During the end phase, the prices observed a strong recovery as demand expanded and while the supply chains faced several disruptions.


The initial phase of the third quarter faced dwindling base oil market sentiments due to similar factors pushing it into the negative zone, as seen in the Asia Pacific countries. The most significant contributor to this downfall of the base oil price trend was the lower rates of production and sales in the lubricants industries.

In the month of September, the market activities seemed to improve on the back of slow production rates and stably growing demand. This is also indicative in the figures as the prices of base oil grew from around 883 USD/MT (FD, NEW) in July to 926 USD/MT in September (FD, NEW).

North America

Due to the excess availability of base oil and its muted demand, the base oil price trend took a bearish turn in the first half of the third quarter. The prices rebounded during the middle of this quarter with the help of the increasing cost of crude oil, which in turn raised the prices of production. In view of the restricted supply of base oil and moderate demand, the manufacturers increased their price quotations and thus caused an uptick in base oil price trend.

Analyst Insight

According to Procurement Resource, the price trend of Base oil is estimated to experience an oscillating trajectory as the demand for base oil and the cost of its feedstock materials seems to be fluctuating.

Base Oil Price Trend for First Half of 2023

Asia Pacific

The base oil prices in the Asian Pacific region were adversely affected by the reduced demands and low production rates. Even after ease in covid restriction policies and OPEC+ production cuts, base oil prices continued to struggle. The slowdown of spot sales and the falling trend of crude oil prices have inhibited the enthusiasm of distributors to hold goods, and the increase in overseas imports eased the concerns about tighter supply caused by domestic maintenance in the early stage.

The imminent arrival of a large amount of Group II oil products at Chinese ports made up for the production losses during the planned maintenance period of domestic producers in February and March, putting further pressure on the spot market. The same stagnancy followed in the second quarter, where the prices inclined though marginally owing to certain market volatilities. Hence, the availability of ample products and low demands from the lubricant industries caused the price trend to remain flat in the Chinese domestic market.


The European market was stagnant in terms of the prices of base oil as the supply and demand equilibrium was maintained throughout the first two quarters of 2022. Given the subdued demands across the European markets, the manufacturers were forced to lower their quotations hoping for positive product movement. However, no positive impact was seen in the market, and the suppliers dumped the surplus supplies in the international market at much cheaper rates. The overall market of base oil slipped, adversely affecting the prices.

North America

The price trend for base oil remained weak in the US domestic market owing to muted market sentiments. The price trend was negatively affected by the declining sales in downstream industries. The cost of raw materials, logistical infrastructure, and labor increased in the region, which was responsible for the marginal hike in base oil prices.

Analyst Insight

According to Procurement Resource, the price trend for Base Oil are expected to oscillate in the upcoming quarter. The price decrease by the manufacturers had not been successful in attracting new businesses. The end-user demands from domestic and international markets seem uncertain, which will have a major impact on the prices of base oil globally.

Base Oil Price Trend for the Year 2022


Since the beginning of 2022, international crude oil prices have kept increasing, which directly impacted the price trend for base oil. In the first quarter, the cost of industrial white oil averaged 7583.74 RMB/MT in the Chinese domestic market, recording a 41.67% Y-O-Y increase. The mismatch between supply and demand and the continued destocking owing to geopolitical turbulence led to the continuous price rise. The steady demand from the automotive sector further supported the raised quotations. The high costs of raw materials coupled with poor logistics lowered the profit margins of the manufacturers.

The price of second-tier base oil averaged 6447.5 RMB/MT, registering an 80.6% Y-O-Y increase towards the end of the second quarter. The Indian base oil market, however, registered corrections in prices in the second half of the year 2022. The third quarter saw a consistent decline in the monthly average prices of the base oil prices as cheap Russian oil became available for both India and China following the Russian invasion of Ukraine in early 2022. The monthly average prices went from 1178 USD/MT in July’22 to about 1152 USD/MT in December’22 in the Indian domestic markets.


With Europe being the most hard-hit region owing to the Russia-Ukraine war, inflation and commodity pricing reached blazing highs. The complete embargo on Russian oil by the EU, coupled with retaliatory sanctions, led to huge volatilities in the crude oil and allied markets. The high power costs coupled with steady demand kept base oil prices towards the high end of the scale. The base oil price averaged 1620 USD/MT during H1’22. However, strategic attempts at correcting the market dynamics paid off in the second half of the year. The US announced a release of its strategic oil reserves to placate the high-heading market. Thereby, base oil prices are traced back to H2’22.

North America

The price trend in the US domestic market was in line with the global outlook. The strong demand from the downstream sectors and limited supply owing to high raw material prices, poor logistics, and skilled labor shortages added to the high quotations of base oil. However, In the second half of the year 2022, the US base oil market depreciated substantially as the inflation in the global economy strengthened the US Dollar, mitigating the domestic prices in the country. The monthly average prices for base oil went from about 1855 USD/MT in July’22 to around 1640 USD/MT in December’22 in the US domestic market.

Analyst Insight

According to Procurement Resource, the price of Base Oil is expected to stabilize in the coming quarter. With the release of supplies from the US and OPEC+, the supply-side constraints will soften. The current bearish market sentiments amid the stockpiling of supplies will directly impact the pricing patterns.

Procurement Resource provides latest prices of Base Oil. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.

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About Base Oil

Base oil refers to lubrication grade oils that are derived from refining crude oil (mineral base oil) or chemical synthesis (synthetic base oil). Group II base oils contain more than 90% saturates, less than 0.3% sulphur, and have a viscosity index of 80 to 120. They are commonly produced through hydrocracking, which is a more complex process than that used for Group I base oils. Group II base oils have better antioxidation properties because all of their hydrocarbon molecules are saturated.

Base Oil Product Details

Report Features Details
Product Name Base Oil
HS Code 271019
Industrial Uses Rubber Manufacturing, Textiles, Blending of Engine Oils
Supplier Database Chevron Corporation, Exxon Mobil Corporation, Hyundai and Shell Base Oil Co., Petro-Canada Lubricant, Saudi Arabian Oil Co.
Region/Countries Covered Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand

Europe: Germany, France, United Kingdom, Italy,  Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece

North America: United States and Canada

Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru

Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
Currency US$ (Data can also be provided in local currency)
Supplier Database Availability Yes
Customization Scope The report can be customized as per the requirements of  the customer
Post-Sale Analyst Support 360-degree analyst support after report delivery

Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.

Base Oil Production Processes

  • Production of Base Oils (Group II) via Hydroprocessing

In this process, vacuum gas oil is used as a feedstock which is run through a hydrocracker at very high pressures. Inside the hydrocarbon, the molecules are reshaped and saturated. Sulfur is converted into hydrogen sulfide gas and nitrogen into ammonia, forming a waxy base oil containing more than 90% saturated compounds.

The second reactor is a catalytic dewaxer which converts the wax molecules to isoparaffins and causes even more saturation. Finally, the final few percent of residual aromatic compounds are saturated to form Group II base oils in a lower temperature but very high-pressure finishing step.


The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).

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