Lubricants Market Morning Report 20260612

Global Market Report

Global Oil Market News

World Bank Raises 2026 Average Brent Crude Price Forecast to $94 per Barrel

The World Bank revised its 2026 average Brent crude price forecast up to $94 per barrel, an increase of $4 compared with its January forecast. Key driving factors include escalating geopolitical tensions in the Middle East, slow progress in implementing OPEC+ production hikes, and mounting pressure on Russia’s energy supply.

EU Unveils 21st Round of Sanctions Against Russia; Oil Price Cap Remains at $44.1 per Barrel

The European Union released details of its 21st sanctions package targeting Russia. The price cap on Russian crude oil is maintained at $44.1 per barrel for a six-month period. The new sanctions extend coverage to banking institutions and cryptocurrency networks.

OPEC Cuts Global Oil Demand Growth Forecast to 1.17 Million Barrels per Day

Disrupted shipping in the Strait of Hormuz prompted OPEC to downgrade its 2026 global oil demand growth projection from 1.38 million barrels per day to 1.17 million barrels per day. Meanwhile, eight OPEC+ member states agreed to raise output by 188,000 barrels per day in June, though market participants view this adjustment as insufficient to ease supply tightness.

US Extends Sanctions Waiver for Seaborne Russian Crude to Stabilize Global Spot Crude Market

The U.S. Department of the Treasury has further extended sanctions exemptions for seaborne shipments of Russian crude to stabilize the international spot crude market. The extension comes amid surging global oil prices stemming from US-Iran tensions and supply shortages affecting energy-vulnerable economies.

Russia Enforces Temporary Jet Fuel Export Ban Until November 30

To secure stable and adequate domestic fuel supply, the Russian government has imposed a temporary ban on jet fuel exports effective June 1 through November 30. The ban excludes fuel stored in technical containers of aircraft in transit.

Lubricant Industry News

Base Oil Prices Keep Surging: 150N Base Oil Reaches RMB 9,677 per Metric Ton

Quotations dated June 5 from domestic petrochemical information agencies show that Shandong 60N base oil is priced at RMB 7,800/MT and Shandong 150N base oil at RMB 9,677/MT; East China 60N stands at RMB 7,905/MT and East China 150N at RMB 9,694/MT. Traders across major regions maintain firm asking prices, and the domestic base oil market remains in an upward cycle.

Idemitsu Releases First Batch of Authorized Industrial Lubricant Distributors for 2026 to Support Brand Transformation

Idemitsu officially announced its first cohort of authorized industrial lubricant distributors for 2026. The eight designated distributors will fully support the brand transformation and upgrading of the company’s industrial lubricant product line, expanding its market reach in the industrial lubrication sector.

Domestic Refined Oil Prices Cut; No.92 Gasoline Still Above RMB 8 per Liter in Most Regions

National refined oil prices were lowered starting June 4, with gasoline prices reduced by RMB 0.41 per liter on average. After the adjustment, No.95 gasoline in many regions fell back below RMB 9 per liter for the first time. The next pricing adjustment window is June 18.

Regional Market Updates

South America

South American Lubricant Market to Hit $2.88 Billion, Driven by Offshore Oil Expansion

The South American lubricant market boasts a 5-year compound annual growth rate (CAGR) of 2.34%. Market expansion is fueled by growing offshore petroleum operations and industrial modernization across the continent.

Africa

African Lubricant Market to Reach $2.77 Billion in 2026, Boosted by Rapid Industrialization

Lubricant consumption across Africa is projected to hit $2.77 billion in 2026 with robust annual growth, supported by fast-track industrial development throughout the continent.

Russian Market

Russia’s Daily Crude Throughput Slumps to 4.69 Million Barrels, Lowest Since 2009

Monitoring data from Russia’s Ministry of Energy indicates the country’s daily crude oil processing volume dropped to 4.69 million barrels in April 2026, marking the lowest April throughput since 2009.

South Asia

India’s May Crude Imports Rise to 5 Million Barrels per Day; Russian Crude Accounts for Stable 20% of Total

India’s crude oil imports in May climbed 11% month-on-month to 5 million barrels per day, with increased supplies from Russia and Venezuela sustaining Russia’s steady 20% import share.

Malaysia Marine Lubricants

PSP Energy Joins Carbon Offset Program, Pushing Marine Lubricant Sector Toward Green Transition

PSP Energy Berhad has officially enrolled in a carbon offset initiative, signaling the marine, logistics and industrial fuel sectors’ shift toward sustainable, low-carbon development.

Lubricant Basic Knowledge

A. Why Do Engines Require Oil Changes at Irregular Intervals?

Oil change schedules depend not solely on time elapsed but on actual degradation of lubricant properties. During operation, elevated temperatures, oxidation and mechanical friction alter lubricant viscosity, necessitating replacement once degradation thresholds are met.

Standard replacement criteria include: lubricant performance falling below the specified standard for the corresponding oil grade (e.g., API SN oil); expiration of the manufacturer’s recommended service interval. If the oil turns dark, contains sediment or floating impurities, an immediate oil change is required even before reaching the scheduled cycle.

B. Antioxidant Ethyl Ester: A Critical Lubricant Additive

Antioxidant ethyl ester (TOC/AOA) is one of the most vital lubricant additives. It delays oil oxidation and preserves the lubricant’s original performance. Different lubricant types exhibit varying oxidation resistance: mineral oils have weaker durability compared to synthetic oils.

Compatibility between antioxidant ethyl ester and other additives (such as ZDDP and detergents) is critical; poor formulation compatibility may trigger sludge formation or oxidative precipitation. Key evaluation indicators for product selection include Total Base Number (TBN), heavy metal content and oxidation induction period.

Technical Highlights

Preview of 2026 Shanghai International Lubricants Exhibition: Pumpbo Offers Core Anti-Corrosion & Wetting Control Solutions

The 25th Shanghai International Lubricants & Application Technology Exhibition will be held June 9–11 at Shanghai New International Expo Center, showcasing core anti-corrosion and wetting control solutions with over 350 high-quality exhibitors in attendance.

Mainstream Technical Trends for Lubricant Additives: Three-Core Technology, Green Development & Intelligent Monitoring

The global lubricant additive market is expected to exceed USD 20 billion in market value by 2026. Dominant technical directions center on the three core additive categories (detergents, antioxidants, extreme pressure anti-wear agents), alongside green manufacturing and intelligent monitoring. The 25th Shanghai International Lubricants Exhibition serves as the flagship industry event for showcasing these innovative technologies.

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