Lubricants Market Morning Report 20260611

Full English Translation (Formal Industry News for Official Website)

Global Market Updates

Iran and Israel both announce ceasefire on strikes; oil prices rebound after slumping

Iran and Israel have successively declared a halt to reciprocal attacks, bringing US-Iran ceasefire negotiations to the final stage. International crude prices fell sharply following the Iran-Israel truce, with WTI crude recovering above $88 per barrel on June 10.

Details of EU’s 21st Russia sanctions unveiled; oil price cap maintained at $44.1 per barrel

The European Union released full details of its 21st round of sanctions against Russia. The price cap on Russian crude oil remains set at $44.1 per barrel for six months. The new sanctions will target banking institutions and cryptocurrency networks.

Rosneft CEO Sechin: Russia cuts output amid sanctions while most OPEC+ members ramp up production

Igor Sechin, CEO of Russia’s Rosneft, stated at the St. Petersburg forum that Russia has reduced oil output under sanction pressure, whereas most OPEC+ nations have raised production in line with the OPEC+ agreement.

India’s Defense Minister pushes back against US and Europe: No ban on Russian crude imports notified; purchases guided solely by national interests

Indian Defense Minister Singh publicly resisted pressure from the US and Europe, stating that India has never received notice to ban Russian crude imports, and all crude purchasing decisions are made purely based on national energy security interests.

US extends sanctions waiver for seaborne Russian oil to stabilize spot crude market

Against a backdrop of surging global oil prices triggered by US-Iran tensions and supply shortages across energy-vulnerable economies, the US Department of the Treasury has once again extended sanctions exemptions for seaborne Russian crude shipments to stabilize the international crude spot market.

Lubricant Industry News

Preview of 2026 Shanghai International Lubricants Exhibition: Hepfield delivers core anti-corrosion & wetting control solutions for industrial lubrication

The 25th Shanghai International Lubricants & Application Technology Exhibition grandly opened on June 9 at Shanghai New International Expo Center. Tianjin Hepfield New Materials Co., Ltd. showcased core technologies at the show, offering one-stop solutions for fluid corrosion inhibition, aqueous phase anti-rust treatment, surface finishing and additive raw materials.

Idemitsu rolls out first batch of authorized industrial lubricant distributors for 2026, launching a new industrial lubrication service ecosystem

Idemitsu officially released its list of the first authorized industrial lubricant distributors for 2026. All eight authorized partners will fully support the brand transformation and upgrading of the company’s industrial lubricant line, expanding the company’s market footprint across the industrial lubrication sector.

Base Oil Quotation Trends: 60N: RMB 4,250–4,600/MT; 150N: RMB 4,100–4,600/MT

Per base oil quotation data from SCI on June 2: Domestic mainstream prices stand at RMB 4,250–4,600 per metric ton for 60N base oil and RMB 4,100–4,600 per metric ton for 150N base oil. Formosa Plastics will conduct maintenance at its refinery in July, which will reduce future base oil arrivals and tighten supply for traders.

Regional Market News

South America

India diversifies crude import sources while Russian crude retains dominant share

Russia remains India’s largest crude oil supplier, with India’s April import volumes of Russian crude far exceeding supplies from other origins.

Africa

South Africa hits record new vehicle sales in June; Chinese brands deliver robust performance

South Africa achieved an all-time high for June new vehicle sales, with compact Chinese vehicles dominating local market growth. Surging automobile sales drive rising demand for lubricants.

Russian Market

Russia imposes temporary jet fuel export ban effective June 1 until November 30

The Russian government issued a temporary ban on jet fuel exports to guarantee stable and sufficient domestic fuel supply, valid from June 1 to November 30.

South Asia

India launches $3 billion oil reserve fund for comprehensive crude security strategy upgrade

The Indian government is establishing a $3 billion crude oil reserve fund and ramping up investment in domestic refining capacity to fully upgrade its national crude security strategy.

Malaysia Marine Lubricants

Persistent Strait of Hormuz disruption tightens marine lubricant supply chains in Malaysia

Marine lubricant supply chains across Malaysia remain constrained, keeping marine fuel prices elevated as shipping disruptions in the Strait of Hormuz continue.

Lubricant Basic Knowledge

A. Lubricants with high Viscosity Index (VI) suit year-round use

The higher the viscosity index (VI), the less a lubricant’s viscosity changes with temperature. High-VI oils will not turn overly thin under high temperatures nor overly thick under low temperatures, making them ideal for plains regions with drastic seasonal temperature fluctuations. Multi-grade oils and synthetic oils generally feature high VI and long service life. When selecting lubricants, refer to the VI value labeled on the product; higher values deliver wider temperature adaptability.

B. Group I–V Base Oil Classifications & Typical Applications

Base oils are categorized into five groups:

1. Group I (Solvent-refined, VI＜90): General-purpose industrial lubricants

2. Group II (Hydrocracked, VI＞120): Premium engine oils

3. Group III (Severely hydrocracked, VI＞140): Synthetic-grade lubricants

4. Group IV (PAO Polyalphaolefin): Excellent low-temperature fluidity, used for aviation and military lubricants

5. Group V (Esters & other synthetic base stocks): Custom lubricants with specialized performance

Select base oils according to your equipment’s operational requirements.

Technical Highlights

2026 China International Petrochemical Technology Industry Forum kicks off in Shanghai in June, targeting innovative global layout

Hosted by Zhenwei International Exhibition Group and undertaken by Huazhenwei Exhibition Co., Ltd., the 2026 China International Petrochemical Technology Industry Forum will be held at Shanghai New International Expo Center in June. Centered on the theme “Innovative Development · Global Layout”, the forum focuses on high-quality growth of the petrochemical industry.

Industrial Lubrication Technology Upgrade Trends: Green Formulations, Carbon Neutrality & Chlorine-Free Standards, Intelligent Monitoring

Full-hydrogenated base oils are advancing full-lifecycle green production, helping enterprises cut long-term equipment maintenance costs over five years. Countries worldwide are rolling out new regulations targeting carbon neutrality, chlorine elimination and nitrite-free additives. Intelligent monitoring technology is being widely adopted across the lubricant industry.