Base Oil Prices Split Amidst Tension at the Strait of Hormuz

The base oil market has seen a split in prices, with Group I values softening due to comfortable spot supply and cautious buying. In contrast, Bright Stock held steady on tighter availability.

Group III grades faced localized shortages that lifted prices, while Group II markets remained soft on ample output and muted demand. The tension around the Strait of Hormuz has added upside risk to feedstock costs for base oil producers, with Brent crude reaching a high of $97 per barrel and WTI climbing to $93 per barrel.

The market outlook remains mixed, with Group I and Group II prices likely to stay under pressure as long as spot supply remains ample. Bright Stock is expected to retain its firmer tone due to limited production flexibility, while Group III premiums may stay elevated until shortages ease.