Lubricants Market Morning Report 20260610

Market Brief

I. Global Oil Market Updates

Shipping activity rebounds in the Strait of Hormuz; oil prices plunge 4% to seven-week lows

The U.S. Secretary of Energy stated that vessel traffic through the Strait of Hormuz has increased 'markedly', easing supply concerns sharply. WTI crude slid below $88 per barrel, while Brent crude fell to $91 per barrel.

OPEC+ rolls out fourth consecutive output hike, adding another 188,000 barrels per day

OPEC+ approved a 188,000 barrels per day production increase for July on Sunday. Nevertheless, shipping blockades in the Strait of Hormuz have kept Saudi Arabia’s actual output below its official quota. Once the strait reopens, these paper barrels will flood the market and trigger oversupply.

Forecast: Full normal operations of the Hormuz Strait unlikely this year

CNBC market forecasts show a 65.5% probability that the Strait of Hormuz cannot resume normal transit before January 2027. The odds of a full recovery before August have plummeted from 60% to 21.5%.

Progress on US-Iran ceasefire: Trump says a deal will be sealed within two to three days

Iran and Israel have halted cross-border strikes. Trump confirmed a US-Iran agreement is expected to be finalized in two to three days. Meanwhile, China’s crude oil imports have slumped to an eight-year low.

Next domestic refined oil price adjustment window: June 13, projected cut of RMB 195 per ton

On the 7th working day of the pricing cycle, the crude oil price change rate stands at -4.42%. Gasoline and diesel prices are forecast to drop by RMB 195 per ton on average, equivalent to a reduction of RMB 0.15–0.17 per liter at the pump.

II. Lubricant Industry News

UniCool Liquid Cooling Redefines New Value Paradigm for the Lubricant Sector

Uni Lubricants taps emerging sectors including data centers, energy storage power stations and ultra-fast charging networks. It takes liquid cooling lubricants as a breakthrough to realize dual innovation in product value and industrial operation models.

Compton signs strategic cooperation with Taiyuan Heavy Industry; factory-fill oils supplied to three leading vehicle manufacturers

Compton has secured major orders in the construction machinery segment. It has completed matching supply of factory-fill lubricants for three top construction machinery OEMs, achieving remarkable expansion in the factory-fill oil market.

Idemitsu unveils 2026 first batch of authorized industrial lubricant distributors; eight partners build upgraded service ecosystem

Idemitsu announced its first cohort of authorized distributors for industrial lubricants in 2026, selecting eight partners to strengthen its nationwide industrial lubricant service network.

III. Regional Market Highlights

South America

Colombia’s new vehicle sales surge 53.9% year-on-year in April, lifting lubricant demand

Colombia recorded 26,827 new vehicle sales in April, a 53.9% year-on-year jump. Cumulative sales from January to April rose 49.5%, with Kia retaining the top market share.

Africa

South Africa’s February auto sales hit record high for the month; Chinese brands claim 16% market share

South Africa sold 53,455 automobiles in February, up 11.4% year-on-year. Chinese automakers accounted for roughly 8,500 units, capturing nearly 16% of the market.

Russia

OPEC slashes 2026 global oil demand growth forecast to 1.17 million barrels per day

In its monthly report, OPEC revised down its 2026 global oil demand growth projection to 1.17 million barrels per day, down from the prior estimate of 1.38 million barrels, weighed down by shipping disruptions in the Strait of Hormuz.

South Asia

China’s crude imports hit eight-year low; India’s Russian crude imports keep falling

Persistent bottlenecks in the Strait of Hormuz have disrupted Asian crude imports. China’s inbound crude volumes dropped to an eight-year trough, while Reliance Industries of India reported a 38% decline in Russian crude arrivals in April.

Malaysia: Marine Lubricants

Strait of Hormuz disruption weighs on Malaysia’s marine fuel market

Vessel transit disruptions at the Strait of Hormuz have restricted ship movements at Port Klang, severely disrupting the supply chain for marine lubricants across Malaysia.