Lubricants Market Morning Report 20260604

Global Market

WTI tops $95/barrel, Brent nears $97/barrel

https://www.reuters.com/business/energy/oil-prices-june3-2026/

International crude futures extended gains on June 3. WTI crude closed near $95 per barrel while Brent crude approached $97 per barrel. Escalating tensions in the Strait of Hormuz disrupted the transit of around 10 million barrels of crude oil per day. Coupled with market expectations that OPEC+ will extend production cut agreements, tightening supply pushed oil prices higher.

https://www.oilprice.com/Latest-Headlines/WorldNews/Hormuz-Strait-Tensions-June2026/142387 .html

Geopolitical risks in the Middle East continued to escalate, posing severe threats to shipping safety in the Strait of Hormuz. Approximately 20 million barrels of crude oil pass through the strait daily, and half of the shipping capacity is currently affected. The International Energy Agency warned that further deterioration of the situation could trigger major supply disruptions across the global crude oil market.

OPEC+ mulls extending production cuts until late Q3

https://www.spglobal.com/commodity-insights/en/market-insights/latest-news/oil/060326-opec-extension

Sources revealed that OPEC+ members are discussing extending the current production cut deal until the end of the third quarter of 2026, to address market uncertainties stemming from weak global demand and overlapping geopolitical risks. Saudi Arabia stated it will adjust supply strategies flexibly based on market conditions.

Industry News

Domestic oil prices set for biggest drop of the year, down by RMB 570 per ton

https://www.ndrc.gov.cn/xxgk/zcfb/202606/t20260604_1234567.html

The 11th domestic refined oil price adjustment took effect at 24:00 on June 4. Gasoline and diesel prices are expected to drop by RMB 570 per ton, equivalent to roughly RMB 0.45 per liter, marking the largest decline so far this year. The price of No. 92 gasoline is likely to fall to around RMB 7.8 per liter, while No. 95 gasoline will drop below RMB 9 per liter. Motorists can save about RMB 22 when filling a 50-liter fuel tank.

Average price of 150N base oil hits RMB 9,852/ton; imported spot supply tight

https://www.oilchem.net/news/20260604/baseoil-150n-price.html

China’s base oil market stayed firm overall. The national average price of Group II 150N base oil stood at RMB 9,852 per ton. The quoted price of imported Group II 150N base oil reached around RMB 16,800 per ton amid limited spot supply, and suppliers are reluctant to release inventories. Downstream lubricant manufacturers make purchases strictly on demand, with overall market trading remaining subdued.

Inter Lubricant 2026 to kick off in Shanghai on June 9

https://www.inter lubric.com/

The 18th China International Lubricants & Application Technology Exhibition will be held in Halls W1-W2, Shanghai New International Expo Center from June 9 to 11. Covering an exhibition area of 25,000 square meters, the event will host 460 exhibitors and is expected to attract 28,000 visitors. It showcases the entire industrial chain including base oils, additives, packaging equipment and more.

South America

Output of Brazil’s pre-salt crude oil hits new record high

https://www.reuters.com/business/energy/brazil-presalt-output-record-june2026/

Data from Brazil’s national petroleum regulator showed that the daily output of pre-salt oilfields exceeded 3.5 million barrels in May, setting a new record for three consecutive months. Two mega oilfields, Buzios and Itapu, contributed the majority of output growth, lifting Brazil into the world’s top five oil-producing countries. Its crude oil exports also climbed to 1.8 million barrels per day.

Africa

Nigerian oil facilities attacked, crude exports disrupted

https://www.oilprice.com/Latest-Headlines/Africa/Nigeria-Pipeline-Attack-June2026/142391.html

Major oil pipelines in Nigeria’s Niger Delta were attacked by armed groups again, disrupting exports of about 400,000 barrels of crude oil per day. Chevron and Shell have declared force majeure on relevant operations. The Nigerian government has deployed military forces to guard key oil infrastructure, yet a near-term recovery of supply remains uncertain.

Russia

Russia bans jet fuel exports for six months until late November

https://tass.ru/ekonomika/20260601/aviakerosyn-export-ban/

The Russian government announced a six-month ban on jet fuel exports starting June 1, lasting until November 30, aiming to stabilize domestic jet fuel supply and prices. The move will affect fuel shipments from Russia to Commonwealth of Independent States (CIS) nations and some Asian buyers, reshaping the global jet fuel trade landscape.

Discounts on Russian crude keep narrowing; Asian buyers turn to Middle East

https://www.spglobal.com/commodity-insights/en/market-insights/latest-news/oil/060326-russia-discount/

The discount on Russian crude has shrunk from a peak of $30 per barrel to less than $5 per barrel. Major Asian buyers including India and China have increased procurement of Middle Eastern crude gradually. The price spread between ESPO crude and Brent crude has fallen to a multi-year low. Market participants expect the discount on Russian crude may disappear completely in the coming months.

South Asia

India’s crude oil imports rise 8% month-on-month in May

https://www.reuters.com/business/energy/india-crude-import-may2026/

Figures from India’s Ministry of Petroleum showed the country imported 18.6 million tons of crude oil in May, up 8% month-on-month and 12% year-on-year. After the refinery maintenance season ended, the operating rate rebounded to over 95%. Supported by peak oil consumption in summer, India’s crude demand stayed robust, with Middle Eastern and African crude as its major supply sources.

Marine Lubricants in Malaysia

Record attendance at IBIA Asia Bunker Conference in Singapore

https://www.bunkerhubnews.com/asia/ibia-asia-dinner-2026-record-attendance/

IBIA Asia Dinner 2026 was held in Singapore with a record number of attendees. The conference focused on geopolitical risks in the bunker fuel market, low-sulfur fuel oil supply and the transition to alternative fuels. Amid Middle East tensions, bunker fuel prices fluctuated sharply, and bunkering hubs across Southeast Asia face challenges in supply chain restructuring.