Lubricants Market Morning Report 20260602

Market Overview

I. Global Market Updates

WTI surges 6% to $92.6, Brent rises 5.2% to $95.9

Oil prices tumbled on May 30 amid uncertainties over US-Iran negotiations. On June 1, WTI crude futures rebounded sharply by 6.02% to USD 92.622 per barrel, while Brent crude climbed 5.19% to USD 95.853 per barrel. Markets remain concerned over the risks of short-term supply disruptions.

EIA cuts global crude demand outlook, weighing on oil prices

As of May 31, Brent crude stood at USD 94.88 per barrel (-3.09%) and WTI crude at USD 88.5 per barrel (-4.75%). The International Energy Agency (IEA) has continuously downgraded demand forecasts. Coupled with the progress of US-Iran talks, oil prices will still face downward pressure in the medium term.

Domestic refined oil prices to drop sharply by RMB 570-650 per ton on June 4

The 11th domestic oil price adjustment of 2026 will take effect at 24:00 on June 4. The crude oil price change rate hits -9.70%. Gasoline and diesel prices are expected to decrease by RMB 520-650 per ton, equivalent to a cut of RMB 0.52-0.56 per liter, marking the largest price drop since the start of 2026.

Average base oil price falls to RMB 9,858 per ton, extending downtrend

The national average mainstream market price of base oil was recorded at RMB 9,858 per ton on June 1, down RMB 91.67 or 0.92% from the previous day. The seven-day average price stands at RMB 10,056 per ton, showing an overall downward trend largely synchronized with crude oil movements.

Geopolitical tensions disturb oil shipping market; petroleum ETF trading volume booms

On May 28, the CSI Petroleum & Natural Gas Index edged up 0.09%. Geopolitical risks continue to disrupt international oil shipping markets. Russian intelligence agents are actively seeking Western technologies as sanctions’ impacts keep spreading.

II. Lubricant Industry News

Uni Lubricants tackles raw material supply crisis via superior formula technology

Since April 2026, the market has suffered tight base oil supply and drastic raw material price fluctuations. Brands relying solely on imported single feedstocks have encountered production difficulties. Leveraging solid technical capacity and profound formula expertise, Uni Lubricants has overcome raw material adaptation challenges and maximized the scope for raw material substitution.

Uni Low-Carbon Tree-in-Bottle Full Synthetic Motor Oil wins International Green Design Award

This product contains 89% bio-based components, paired with degradable PMU plastic bottles and seed paper labels. It was granted the International Green Design Award by the World Green Design Organization (WGDO), setting an industry benchmark for eco-friendly lubricant design.

Beijing Tianyi Chemical maintains leading exports of lubricant additives

Beijing Tianyi Chenchang New Materials Technology specializes in the R&D and manufacturing of functional chemicals. It acts as a major domestic supplier of lubricant additives and ranks among the top exporters of such additives nationwide.

III. South American & African Markets

Brazilian court orders restoration of abandoned Fordlândia town

A Brazilian court ruled to renovate Fordlândia, a rubber plantation town built by Ford Motor in the Amazon in 1928, reflecting Latin America’s growing attention to industrial heritage. In Africa, crude import demand remains stable due to demand diversion from Asia.

IV. Russian Market

Russian intelligence seeks Western technologies to bypass sanctions

According to US intelligence officials, Russian intelligence agencies are attempting to obtain sensitive Western technologies related to petroleum extraction and refining to mitigate sanction impacts, demonstrating sustained suppression of Russia’s energy technological capacity under sanctions.

V. South Asian Market

India’s projected refined oil demand growth slashed to 77,000 barrels per day

Eased tensions in the Strait of Hormuz have diversified India’s crude import channels. Its projected growth in refined oil demand was revised down from 128,000 barrels per day to 77,000 barrels per day, indicating slower demand expansion.

VI. Malaysian Market (Marine Lubricants)

Crude price swings affect bunker price spreads between Singapore and Malaysia

Brent crude traded within the USD 91-96 range in early June, while shipping demand in the Strait of Malacca remained steady. Bunker fuel prices fluctuate alongside crude oil, with price gaps between Singapore and Malaysian port bunkers kept within a reasonable range.

VII. Lubricant Basic Knowledge

Why are synthetic oils more expensive than mineral oils? Are they worth the premium?

Synthetic oils feature uniform molecular structures and outstanding thermal stability, resisting oxidation and deterioration under high temperatures, and delivering far superior low-temperature fluidity compared to mineral oils. Their drain intervals can be extended by 50%-100% and they provide better equipment protection. Though their unit price is 30%-50% higher, the comprehensive total cost of use may be lower.

(Customer-oriented Popular Science)

Differences between ACEA (European) and API (American) Standards

API standards focus on anti-wear protection (e.g. SN/SP grades), while ACEA standards place greater emphasis on high-temperature high-shear viscosity (HTHS) and sludge control (e.g. A3/B4). European vehicle models generally require ACEA certification, whereas American and Asian vehicles mostly adopt API specifications. ACEA compliance must be prioritized for exports to Europe.

(Technical material for sales training)

VIII. Technical Highlights (Additive Technology)

Technical trends for high-speed vacuum pump oil: bottlenecks for precision manufacturing consumables

Semiconductor wafer production and military equipment impose ever-stricter vacuum requirements, creating a tripartite balancing challenge for vacuum pump oil between saturated vapor pressure, kinematic viscosity stability and oxidation resistance. Effective drain interval management has become critical to equipment operating efficiency.

Flexible additive formulas become core competitiveness amid base oil shortages

Traditional formula systems with poor raw material compatibility and limited substitution options have exposed vulnerabilities during supply crunches. Future additive formulas must feature stronger raw material tolerance to sustain stable performance amid shifts between different base oil grades.

IX. Industry Exhibitions & Conferences

Inter Lubric China 2026 – China (Shanghai) International Lubricants Exhibition

Date: June 9-11, 2026

Venue: Halls W1-W2, Shanghai New International Expo Center

This is the 25th edition of China’s most authoritative professional lubricant exhibition, co-hosted by PetroChina and Sinopec Lubricants. It gathers 460 exhibitors and expects 28,000 visitors across a 25,000 m² exhibition area, running concurrently with cippe Petrochemical Exhibition (1,100 exhibitors, 100,000 attendees).

Schedule:

Day 1 (Jun 9): Opening Ceremony + Exhibition

Day 2 (Jun 10): Technical Forums & New Product Launch Events

Day 3 (Jun 11): Exhibition & Closing Ceremony

Detailed agendas to be released on the official website.

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