Lubricants Market Morning Report 20260518

Global Market Brief (Official Formal English for Petrochemical Websites)

I. Global Market Trends

US to terminate Russian oil waivers on May 17, fully reinstate sanctions on Russian crude

The United States officially announced it will end import exemptions for Russian petroleum, targeting Russia’s energy export lifeline and pushing Asian nations highly reliant on Russian crude such as India to the brink of an energy crisis.

Domestic refined oil prices set for RMB 250/ton cut on May 21

Only two working days have passed in the 10-day pricing cycle. The crude oil price change rate exceeds -4.50%, pointing to a price reduction of RMB 250 per ton (RMB 0.19–0.23 per liter), far above the RMB 50 threshold for adjustments.

Crude surges 10.7% this week; gasoline and diesel price cut may shrink to RMB 30/ton

As of the 6th working day on May 17, the cycle’s average crude price rebounded to $101.6 per barrel, lifting the change rate to -1%. The expected price cut has narrowed sharply and the May 21 adjustment may be suspended.

Global crude output keeps sliding in April amid Strait of Hormuz tensions

Escalating strait tensions dragged global oil production down in April, with sharp drawdowns in OECD onshore inventories. Global oil demand contracted passively in 2026; refinery throughputs slumped in Q2 while refining margins remained elevated.

Persian Gulf conflict enters its 11th week, weighing on global energy supply landscape

The Persian Gulf conflict has lasted nearly 11 weeks. India has requested the US to extend Russian oil import waivers, which were temporarily issued in March and extended twice until May 16.

II. Lubricant Industry News

Shanghai Advanced Research Institute, CAS files patent for wide-temperature alkyl naphthalene base oil

The Shanghai Advanced Research Institute of the Chinese Academy of Sciences, in collaboration with Lutianhua, filed a patent for wide-temperature alkyl naphthalene base oil. Modified Y-type molecular sieve catalysts are adopted to produce alkyl naphthalene with viscosity index comparable to commercial products, alongside a wider flash point and pour point range that boosts finished synthetic lubricant quality.

Jinzhou Kangtai, Rianlon patent low-base-number composite lubricant additives

By optimizing the proportion of sulfonates, sulfurized alkyl phenates and high-molecular ashless dispersants, plus antioxidants, the developed low-base-number composite additives deliver superior detergency, dispersancy and oxidation resistance for efficient sediment control.

Uni-President Lubricants Titanium Energy Series achieves dual API SQ / GF-7A certification first

The new 2026 API SQ / ILSAC GF-7A standards have officially taken effect. The Titanium Energy Series from Uni-President Lubricants completed the dual certification upgrade ahead of competitors. Powered by Titanium Fluid Intelligent Lubrication Technology, the oil instantly identifies critical engine wear points and forms a high-strength protective oil film.

III. South American Market

New Latin American energy growth hub: Uruguay’s business environment attracts Chinese foreign trade firms

Within Latin America, Uruguay stands out for stable policies and standardized business conditions, drawing Chinese foreign trade enterprises. Numerous companies leverage customs data to expand export channels for energy and chemical products.

IV. African Market

Nigeria upstream reforms fuel surge in African oil & gas FIDs

Following reforms to Nigeria’s energy sector, the country’s share of Africa’s upstream Final Investment Decisions (FIDs) jumped from 4% in the past decade to roughly 40% in the last two years. President Bola Tinubu’s reforms reversed declining upstream investment triggered by regulatory uncertainty and security risks.

V. Russian Market

Full US restrictions resume on seaborne Russian oil, disrupting imports for India and other nations

The US sanctions waiver for seaborne Russian crude expired on May 16 without renewal, reinstating comprehensive trade curbs that directly hit importers including India.

Russia’s crude exports drop another 3% MoM to 4.65 million bpd

Russia’s crude export volumes continue declining. Market analysts project the global crude supply-demand gap will widen to 600,000 barrels per day, with strong support forming below $92 per barrel for Brent crude.

VI. South Asian Market

India’s May Russian crude imports hit record 2.3 million bpd; cuts likely once waivers lapse

Kpler data shows India imported a record 2.3 million barrels of Russian crude per day in May. Without an extension of the US waiver, total monthly imports could fall to 1.9 million bpd, placing dual pressure on Indian refiners.

India urges US to extend Russian crude import exemptions

India has requested the US to prolong the Russian crude sales waiver beyond May 16. The US Treasury previously granted two extensions but declined further renewal upon expiry, leaving India facing energy supply headwinds.

VII. Malaysian Market (Marine Lubricants Focus)

Ningbo-Klang Economic & Industrial Exchange Conference deepens China-Malaysia port cooperation

The Ningbo-Klang Economic & Industrial Exchange Conference was held in Klang, Malaysia on May 13 with nearly 100 delegates in attendance. Through port alliances and sister-port partnerships, Ningbo Zhoushan Port and Port Klang established all-round collaboration in information sharing and personnel training, boosting trade in marine lubricants.

VIII. Lubricant Popular Science for Customers

What exactly does a lubricant’s Viscosity Index represent?

The Viscosity Index (VI) measures how stable a lubricant’s viscosity remains across temperature shifts. A higher VI means the oil stays thin enough for cold startups and avoids excessive thinning under high heat, delivering consistent performance year-round.

Sales tip: High-VI oils act as an all-season safeguard for equipment — enabling easy cold starts, preventing cylinder scuffing, and extending drain intervals.

[Customer-Friendly Popular Science]

API SQ / ILSAC GF-7A: Core upgrades to the 2026 new standard

API SQ replaces API SP as the top-tier gasoline engine oil specification with three major upgrades:

1. Stricter High-Temperature High-Shear (HTHS) standards to strengthen Low-Speed Pre-Ignition (LSPI) protection

2. Improved fuel efficiency to match China National VIb emission norms

3. New timing chain wear test to mitigate chain elongation issues

Sales pitch: GF-7A certification is the mandatory standard for National VI vehicles.

[Sales & Technical Training Material]

IX. Technical Highlights (Oil Analysis & Testing)

In-depth analysis of NSK E-DFO ultra-low volatility micro-lubrication technology

Technical Key Points:

1. Flaky PTFE powder forms micro-sponge oil-locking structures to suppress vacuum volatilization

2. Semi-dry micro-lubricating films combine physical properties of liquid and solid lubricants

3. Designed for bearing lubrication under vacuum conditions with minimal evaporation

Application Scenarios: Vacuum equipment, semiconductor manufacturing, precision bearings

Conclusion: E-DFO eliminates the volatility bottleneck limiting traditional lubricants in vacuum environments.

Functional ester full-synthetic technology redefines high-temperature lubrication limits

Technical Key Points:

1. Composite formulation integrating CTL coal-to-liquid base stock, Group IV PAO, esters and organic molybdenum

2. 23% better viscosity retention under high-temperature shear than conventional PAO oils

3. Magnetic maintenance technology extends service life

Application Scenarios: Heavy-duty industrial equipment operating continuously at high temperatures

Conclusion: Synergies between organic molybdenum anti-wear additives and magnetic maintenance reduce oil pressure fluctuations by over 40%.