Asian Base Oil Prices Surge on Tight Supply and Crude Volatility

Base oil prices have been on the rise in Asia due to tight supply and a firmer crude oil complex. According to ALCHEMPro, Group III base oil prices moved higher by approximately $0.02 per kg amid very tight availability and regional shortages. The 6 cst grade was assessed at $3.65 per kg and the 8 cst grade at $3.56 per kg.

The shortage of base oils is being driven by a handful of major refiners, including Luberef, ENEOS, CNPC, Petronas, GS Caltex, ExxonMobil and IOCL. Output and export decisions from these producers are central to how quickly any feedstock cost changes are passed through to buyers.

The supply-constrained market is layered on top of a volatile upstream crude backdrop, with Brent crude rising from $94 per barrel on September 01, 2026, to a peak of roughly $108 per barrel on September 15, 2026. The rally and subsequent pullback were driven largely by supply-disruption concerns around the Strait of Hormuz.