Base Oil Price Chart, Trend, Analysis, Database & Forecast

Key Highlights of Base Oil Price Trends – Q2 2024

The Base Oil Price Chart shows prices are primarily driven by the robust demand from various end-use industries, particularly automotive and industrial sectors. As vehicles become more sophisticated and fuel-efficient, the need for high-quality lubricants has surged, leading to increased consumption of Group II and Group III base oils, which offer superior performance. In addition to this, the growing trend toward sustainability is prompting manufacturers to adopt more environmentally friendly formulations, further driving the demand for bio-based and recycled base oils. The expansion of the automotive industry, coupled with the rising production of electric vehicles (EVs), is also influencing market dynamics, as these vehicles require specialized lubricants for optimal performance.

Base Oil Prices Second Quarter 2024:

• United States: 1732 USD/MT
• China: 818 USD/MT

Factors Influencing Base Oil Prices Across Different Regions in Q2 2024

North America: In Q2 2024, the North American base oil market experienced a notable upward trend in pricing, primarily fueled by rising crude oil prices and heightened production costs stemming from geopolitical tensions and supply chain disruptions. Refiners are responding to competitive pressures by prioritizing base oil production, leading to a significant year-over-year increase in output. Seasonal factors also played a crucial role, with participants stockpiling inventories in anticipation of increased demand due to the summer driving season and hurricane preparations, further supporting price increases.

Asia-Pacific (APAC): Concurrently, the APAC region saw significant price increases driven by supply constraints from maintenance shutdowns and operational disruptions in key production facilities. This tightening market was exacerbated by rising demand from the automotive and manufacturing sectors, leading to intensified competition among buyers. The Base Oil Price in China, in particular, experienced notable price fluctuations, reflecting robust demand alongside cautious purchasing behaviors that sustained pricing momentum upward throughout the quarter, highlighting a generally positive market outlook.

Europe: Furthermore, the European market shifted from a bearish to a bullish trend, particularly in Germany, where price fluctuations were most pronounced. While trading activity was initially muted due to holidays, demand surged in May as operational costs and supply shortages became evident. Seasonal factors, such as the summer driving season, spurred increased lubricant demand, further pushing prices higher in June.

Middle East: Along with this, the Middle East rose sharply, driven by a combination of increasing freight rates and supply shortages following Ramadan. Trading activity picked up post-holiday as lubricant blenders sought to replenish stocks in anticipation of rising sales. Moreover, ongoing geopolitical tensions, including shipping attacks by Houthi rebels complicated logistics, forcing vessels to take longer routes, which further strained supply chains and contributed to the upward price trend in the region.

Regional Price Analysis:

• Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Thailand, South Korea, Malaysia, Nepal, Taiwan, Sri Lanka, Hongkong, Singapore, 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
• Middle East & Africa: Saudi Arabia, UAE, Israel, Iran, South Africa, Nigeria, Oman, Kuwait, Qatar, Iraq, Egypt, Algeria, and Morocco

Note: The current country list is selective, detailed insights into additional countries can be obtained for clients upon request.

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Imarc Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services.