Lubricants Market Morning Report 20260508

Global Market Brief (Formal English for Petrochemical Official Website)

I. Global Market Trends

Wild swings in international crude oil prices; WTI falls below $90 per barrel

International crude oil prices slumped sharply on Wednesday, with NYMEX light sweet crude futures briefly breaking the key psychological threshold of $90 per barrel, while Brent crude tumbled more than 11% intraday. At settlement, June-delivery light crude futures on NYMEX closed at $95.08 per barrel, down 7.03%.

UAE withdraws from OPEC, reshaping the landscape of the global oil market

The United Arab Emirates officially pulled out of OPEC on May 1, leaving the bloc with only 11 member states. The move will weaken OPEC’s leverage over global oil supply and pricing, triggering major structural shifts across the worldwide petroleum market.

OPEC+ plans to hike output by 188,000 barrels per day in June; markets doubt implementation feasibility

Seven core OPEC+ members agreed to raise crude production quotas by 188,000 barrels per day for June. Market participants widely argue that shipping disruptions in the Strait of Hormuz will render this output boost a purely 'paper target', with minimal actual supply additions expected.

Domestic lubricant prices edge down, latest quotation at RMB 9,750 per metric ton

As of May 6, 2026, domestic lubricants were priced at RMB 9,750 per metric ton, a drop of RMB 33.33 or 0.34% from the previous trading day. The seven-day average price stands at RMB 9,794.44 per metric ton amid an overall weak market sentiment.

Domestic refined oil prices set for upward adjustment on May 8

Sustained rallies in international crude pushed the crude price adjustment rate to 2.56%. Prices are projected to rise by RMB 210 per metric ton, equivalent to a retail hike of RMB 0.16–0.19 per liter for gasoline and diesel. The price revision will take effect at 24:00 on May 8.

Dramatic shifts in global oil trade flows; three transshipment ports see explosive throughput

Daily oil volumes passing through the Strait of Hormuz have plummeted to just 430,000 barrels, merely 2.3% of pre-conflict levels. The traditional unipolar 'Middle East-to-Global' oil supply route has been disrupted, with three major transshipment hubs recording surging cargo volumes as oil tankers reroute en masse worldwide.

II. South American Market

MERCOSUR-EU free trade agreement enters into force

The MERCOSUR-EU free trade agreement took provisional effect on May 1, with both sides rolling back tariffs on a range of products. Concluded after 25 years of negotiations, the deal will boost exports of South American petroleum and lubricant products to Europe.

III. African Market

UAE exits OAPEC (Organization of Arab Petroleum Exporting Countries)

The UAE announced its withdrawal from OAPEC, marking a strategic shift in its energy agenda to secure greater autonomy over oil production, which may alter petroleum supply dynamics across Africa.

IV. Russian Market

Russia pivots crude oil exports toward Asia

Hampered by Western sanctions, Russia has steadily redirected its oil export volumes to Asian buyers. Moscow maintains production coordination with Saudi Arabia under the OPEC+ framework, yet the UAE’s exit risks undermining the alliance’s effectiveness.

V. South Asian Market

India’s lubricant market maintains steady growth

India’s lubricant sector stays on an upward growth track, with local brands including Nulon India capturing expanding market share. Rising vehicle ownership and rapid industrialization fuel consistent demand growth for lubricants.

Indonesia promotes RMB settlement and plans panda bond issuance

Indonesia is actively adopting the RMB for cross-border financial transactions and investments, with plans to launch panda bonds. The policy will streamline China-Indonesia energy trade and facilitate commerce in petrochemical goods such as lubricants.

VI. Malaysian Market (Marine Lubricants Focus)

Macron proposes France-UK-led multinational security mission for the Strait of Hormuz

French President Emmanuel Macron put forward a proposal for a France-United Kingdom coordinated maritime security operation to patrol the Strait of Hormuz, urging an immediate end to the strait blockade. Should the plan materialize, global shipping bottlenecks will ease substantially, delivering positive momentum to marine fuel markets in Southeast Asian nations including Malaysia.

Maersk vessel collision at Chittagong causes schedule delays

A Maersk container ship sustained stern hull damage following a collision in Chittagong Port, leaving roughly 2,800 containers stranded. The incident disrupted vessel schedules, straining regional shipping capacity and indirectly impacting port operations across Southeast Asia such as Port Klang in Malaysia.