Get the latest insights on price movement and trend analysis of Base Oil in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
For the First Half of 2022
Since the beginning of 2022, international crude oil prices have kept increasing, which directly impacted the price trends 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.
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 the said period.
The price trends in the US domestic market were 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 labour shortages added to the high quotations of base oil. The base oil group II N100 grade price averaged 1950 USD/MT in the said period.
According to Procurement Resource, the price of base oils 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.
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.
|Product Name||Base Oil|
|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.
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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