Lubricants Market Morning Report 20260618

Global Market

Oil Prices Rebound After Sharp Plunge: WTI Recovers to $76.79, Brent at $79.55

Market sentiment eased following the signing of the US-Iran agreement. WTI crude closed at $76.79 per barrel on June 17, up 0.97%, while Brent crude settled at $79.55 per barrel, a 0.75% gain. After slumping more than 10% the previous session, the technical rebound was evident yet limited in strength. Market participants are closely monitoring progress of follow-up negotiations after the formal signing in Geneva tomorrow.

Domestic Refined Oil Prices to See Biggest Drop This Year Tonight: Expected Cut of RMB 480–560 Per Ton

Prices were adjusted upward by RMB 260/255 per ton at 24:00 on June 17. During the pricing window at 24:00 on June 18, the crude price change rate stands at -7.11% to -7.62%, projecting a price reduction of RMB 480–560 per ton, equivalent to a RMB 0.44–0.49 cut per liter. Filling a 50-liter tank will save RMB 22–25. If implemented, this will mark the largest price decline in 2026.

US Reinstates Oil Sanctions Against Russia; Waiver Expires Without Extension

The US Department of the Treasury declined to extend the maritime crude oil sanction waiver, which expired on April 17. At the G7 Summit, Trump stated the US may soon reinstate full sanctions on Russia, urging Moscow to reach a settlement with Ukraine. As US-Iran détente brings additional Middle Eastern crude to global markets, Washington’s tolerance for Russian oil imports is set to shrink.

OPEC Slashes 2026 Demand Growth Forecast for Second Consecutive Month to 970,000 bpd, Down From Prior 1.17 Million bpd

In its monthly oil market report, OPEC revised down its projection for global oil demand growth in 2026 to 970,000 barrels per day, a second consecutive downgrade from the earlier forecast of 1.17 million barrels per day. The EIA and IEA hold an even more bearish outlook, predicting an overall contraction in oil demand for 2026. Surging fuel costs have suppressed worldwide consumption.

Industry News

Kunlun Lubricants Makes Breakthrough in Domestic Substitution: Mastered Core Technologies for 46 Key Additives

PetroChina Lubricant Company’s self-developed Kunlun KUC22 ether ester air compressor oil passed an 8,000-hour service verification test, enabling domestic substitution of critical lubricants for Ingersoll Rand compressors. Over the past five years, more than 40 imported lubricant grades have been localized, filling multiple domestic technology gaps.

ExxonMobil Weighs Large-Scale M&A Targets Including Lubricant Segments

ExxonMobil is considering major acquisition moves covering specialty sectors such as lubricants. Amid the oil price downturn, major oil conglomerates are accelerating industrial consolidation, and the lubricants sector is poised for a wave of mergers and acquisitions.

Valvoline Launches New Beyond Series Lubricants for New Energy Vehicle Aftermarket

Valvoline rolled out its new Beyond product line formulated exclusively for new energy vehicles, reflecting the broader industry shift toward the EV aftermarket lubricant track.

South American Market

Brazil remains South America’s top lubricant importer. Argentina’s economic recovery has boosted trade across the Mercosur bloc. Lower crude prices reduce import costs for regional buyers, while demand for machinery oils used in mining and agriculture maintains steady growth.

African Market

Egypt and South Africa together capture over 75% of Africa’s total lubricant market share. Falling oil prices ease import expenditure for African nations, and lubricant consumption is expected to pick up.

Russia

Russia imposed a jet fuel export ban effective June through late November. Ukrainian long-range strikes reaching 700 km into Russian territory have damaged domestic refineries, pushing Russian refining throughput to its lowest level since 2009. The US has reinstated oil sanctions on Russia with no extension of import exemptions.

South Asian Market

India ranks as the world’s fifth-largest lubricant market, with industrial consumption accounting for 51% of total demand. The import waiver for Russian crude expired after June 17, and Indian refiners are expected to shift procurement toward Middle Eastern crude supplies.

Malaysian Marine Fuel

Marine fuel supply chains are gradually recovering following the reopening of the Strait of Hormuz, with prices projected to ease. Hong Kong launched a three-year green marine fuel incentive program to encourage vessels to switch to low-emission bunkers.

Fundamental Knowledge

A. Popular Science: What Happens If You Overfill Engine Lubricant?

Excessive lubricant raises the oil level above the maximum mark, increasing resistance inside the crankcase. Rotating parts churn oil violently instead of forming a smooth lubricating film, accelerating component wear. Other side effects include elevated oil operating temperature, seal leakage, and worsened fuel economy.

Best practice: Align oil levels strictly between the upper and lower marks on the dipstick; the red line indicates the maximum fill limit and must not be exceeded. For accurate readings, run the engine for 10 minutes before checking oil volume.

B. Technology: Differences Between ACEA (European) and API (US) Lubricant Standards

API (American Petroleum Institute) and ACEA (European Automobile Manufacturers Association) represent the two dominant global lubricant specification systems. API focuses on general performance metrics including anti-wear, antioxidation and detergency. ACEA standards place stricter emphasis on European engine operating characteristics such as high-temperature endurance, fuel efficiency and exhaust aftertreatment compatibility.

API SP grade corresponds to ACEA C5/C6 (low SAPS, fuel-efficient formulations). However, ACEA enforces tighter limits on HTHS viscosity, evaporative loss and phosphorus content. Practical guidance: European vehicles cannot rely solely on API ratings; oils must meet matching ACEA classifications to guarantee reliable engine operation.

Featured Technology

Risks of Mixing Different Lubricant Brands: Cross-Brand Blending May Damage Engines

Additive packages vary widely across lubricant manufacturers. Chemical reactions may occur when incompatible formulations are mixed, triggering additive precipitation or performance failure. Mixing different base oil categories (mineral vs. synthetic) carries extra risks: viscosity index improvers may lose compatibility, leading to emulsification, sediment formation and filter clogging.

Recommendation: Drain all residual old lubricant completely before refilling with new oil during oil changes.

Three Core Criteria for Grease Selection: Consistency, Drop Point & NLGI Grade

Three key parameters govern grease specification selection:

1. Consistency: Determines load-bearing capacity; common grades No.1, No.2, No.3

2. Drop Point: Indicator of high-temperature resistance, typically above 180°C

3. NLGI Grade: Ranges from 0 to 4; Grade 0 softest, Grade 4 firmest

Common misconception: Consistency (semi-solid property of grease) must not be confused with viscosity (fluid oil property), as the two metrics cannot be directly converted.

Upcoming Exhibitions

10th China Lubricant Technology Innovation & Industry Development Forum

China (Guangzhou) Lubricant Supply Chain Products & Technology Exhibition

Date: July 21–22, 2026 | Venue: Guangzhou

Combined industry forum and supply chain expo; booth recruitment underway.

The Shanghai International Lubricants Exhibition concluded on June 9–11.

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