Global Editor, Base Oil News

Iain Pocock

Global Editor

Global Base Oils and Lubricants Markets

Base Oil News

Base Oil News focuses on the interplay between fundamentals and prices in the global base oils and lubricants markets.

Baseoilnews.com combines daily, weekly and monthly base oils and lubes fundamentals data from every region of the world to build the most comprehensive and up-to-date global picture of the state of the market.

The data and analysis provide key tools to understand current market developments and opportunities and to anticipate how the market is likely to behave in the coming months.

Base oils producers, lube blenders and consumers can then better plan accordingly.

Baseoilnews.com analyses and publishes market news and data every day as it breaks.

Commodities

<ul><li>Global surplus rebounded to its largest April level in three years.</li><li>Asia's surplus widened to a four-month high as supply continued outpacing slower demand growth.</li><li>Europe's production surplus narrowed to a six-month low as lower output tightened regional availability.</li></ul>

Global surplus rebounded to its largest April level in three years.Asia's surplus widened to a four-month high as supply continued outpacing slower demand growth.Europe's production surplus narrowed to a six-month low as lower output tightened regional availability.

Global Base Oil Surplus Widens In April As Disruption Buying Eases

<ul><li>The full impact of the Middle East disruption became visible across global markets as the last in-transit cargoes cleared, exposing widening shortages in premium-grade supply.</li><li>China delivered the market's strongest supply response, lifting Group III output to a 15-month high in June, but the additional production remained insufficient to replace lost Middle East volumes.</li><li>Asia's export recovery stayed constrained as weak Singapore exports offset stronger Chinese production, limiting surplus supplies available to overseas buyers.</li></ul>

The full impact of the Middle East disruption became visible across global markets as the last in-transit cargoes cleared, exposing widening shortages in premium-grade supply.China delivered the market's strongest supply response, lifting Group III output to a 15-month high in June, but the additional production remained insufficient to replace lost Middle East volumes.Asia's export recovery stayed constrained as weak Singapore exports offset stronger Chinese production, limiting surplus supplies available to overseas buyers.

Base Oils and Lubricants: Weekly Global Market Review - 10 Jul '26

<ul><li>Global supply rose for a sixth straight month from a year earlier despite easing from March's five-year high.</li><li>Asia accounted for more than 55% of global production, its highest monthly share in more than five years.</li><li>Europe's production fell to a six-month low, accounting for a larger share of the monthly decline than the Middle East.</li></ul>

Global supply rose for a sixth straight month from a year earlier despite easing from March's five-year high.Asia accounted for more than 55% of global production, its highest monthly share in more than five years.Europe's production fell to a six-month low, accounting for a larger share of the monthly decline than the Middle East.

Global Base Oils Supply Holds Firm In April Despite Middle East

<ul><li>Disruption-driven stock-building unwound across major markets, improving supply availability faster than buyers had anticipated</li><li>Supply returned to surplus in markets such as Argentina as recovering production and weaker demand reversed recent shortages</li><li>Group I again demonstrated the benefits of a broader production base, contrasting with tighter Group II and especially Group III supply</li></ul>

Disruption-driven stock-building unwound across major markets, improving supply availability faster than buyers had anticipatedSupply returned to surplus in markets such as Argentina as recovering production and weaker demand reversed recent shortagesGroup I again demonstrated the benefits of a broader production base, contrasting with tighter Group II and especially Group III supply

Base Oils and Lubricants: Weekly Global Market Review - 3 July '26

Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

Thematic (Sector/Industry)

<ul><li>In 1H26, the Hang Seng Index (HSI) has shown a moderate correction but highly distorted signal, declining by ~3,450 points from 26,338 to 22,881 between Jan 2 and Jun 30, 2026.</li><li>However, we believe the headline index performance fails to capture the true market dynamics, particularly the ongoing AI-driven structural rally across AI foundation model, semiconductor memory and PCB names.</li><li>As a result, we believe that HSI is no longer a reliable benchmark for capturing “growth beta” in Hong Kong equities.</li></ul>

In 1H26, the Hang Seng Index (HSI) has shown a moderate correction but highly distorted signal, declining by ~3,450 points from 26,338 to 22,881 between Jan 2 and Jun 30, 2026.However, we believe the headline index performance fails to capture the true market dynamics, particularly the ongoing AI-driven structural rally across AI foundation model, semiconductor memory and PCB names.As a result, we believe that HSI is no longer a reliable benchmark for capturing “growth beta” in Hong Kong equities.

Market Strategy – When the Index Falls Behind – HSI Distortion in an AI-Driven Market

China

PetroChina Company Limited operates as an oil and gas company. The Company offers crude oil and oil products exploration, development, production and marketing. PetroChina also markets petrochemical products and derivative chemicals.

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PetroChina (601857 CH)

Global Base Oil Surplus Widens In April As Disruption Buying Eases

Global surplus rebounded to its largest April level in three years. Asia's surplus widened to a four-month high as supply continued outpacing...

Base Oil News

Base Oils and Lubricants: Weekly Global Market Review - 10 Jul '26

The full impact of the Middle East disruption became visible across global markets as the last in-transit cargoes cleared, exposing widening...

Base Oil News

Global Base Oils Supply Holds Firm In April Despite Middle East

Global supply rose for a sixth straight month from a year earlier despite easing from March's five-year high. Asia accounted for more than 55% of...

Base Oil News

Base Oils and Lubricants: Weekly Global Market Review - 3 July '26

Disruption-driven stock-building unwound across major markets, improving supply availability faster than buyers had anticipated Supply returned...

Base Oil News

Market Strategy – When the Index Falls Behind – HSI Distortion in an AI-Driven Market

In 1H26, the Hang Seng Index (HSI) has shown a moderate correction but highly distorted signal, declining by ~3,450 points from 26,338 to 22,881...

Quam Securities

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52-week Range

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