Lubricants Market Morning Report20260716

Section 1 Global Market Trends

Trump proposed a 30% transit toll on vessels passing through the Strait of Hormuz, slamming Iran’s illegal sanctions.

The measure will add an extra cost of USD 16 per barrel. Iran demands the U.S. Congress enact legislation to resolve the dispute and formulate dedicated toll-charging regulations.

180 Iranian parliamentarians put forward motions calling for retaliation and punitive measures, endorsing military countermeasures.

The rollout of the Strait of Hormuz Administration Act has sharply escalated the risk of military confrontation between Iran and Israel.

Yemen’s Houthi rebels resumed confrontational operations targeting Saudi Arabia after a four-year ceasefire.

Saudi authorities stated that Houthi forces launched missile strikes against Saudi territory, triggering concerns among Arab states, Qatar and other regional nations.

China’s refined oil price adjustment window is approaching on July 17, with a reversal to upward price hikes expected.

Crude oil prices have surged by over 13% within two days, marking the 13th round of price adjustment as an upward revision.

U.S. June CPI data is scheduled for release, with the market closely tracking inflationary pressures driven by energy costs.

Heightened geopolitical risks have boosted market uncertainty, lifting the probability of a September interest rate hike.

Section 2 Lubricant Industry News

Group II base oil prices maintained an upward trend, with imported Group II 150N base oil quoted at RMB 3,500 – 3,800 per metric ton.

Mounting upstream crude oil costs continue to underpin base oil price gains.

Domestic full-synthetic motor oils have captured a prominent market share, with client group revenue growth exceeding 30%.

The high-end lubricant market index has jumped 3.2 times over three years amid rapid expansion of premium product demand.

Section 3 South American Market

Brazil: Imports of agricultural machinery rose by 15%, while demand for road transport lubricants grew year-on-year.

Section 4 African Market

Hargeisa: Hosted the largest mining machinery trade fair in East Africa for the first time, driving a breakthrough in lubricant demand.

Section 5 Russian Market

Russia’s exports to Asian provinces expanded, with sales of marine cylinder oils jumping by 40%.

Section 6 South Asian Market (Including Bangladesh)

Bangladesh: Lubrizol partnered with IMCD to expand lubricant additive businesses; finished lubricants are projected to register a CAGR of 3–5%, with U.S.-origin oil products accounting for nearly 26% of market supply.

Bangladesh: Diversified economic growth fuels rising demand for power lubricants, alongside increased penetration of full-synthetic oils.

India: Lubricant demand for two-wheelers drove an 8% year-on-year sales increase, hitting an all-time record high.

Section 7 Marine Bunker Fuels in Malaysia

Singapore’s marine bunker fuel sales hit an annual volume of 5 million metric tons, with a growing number of international vessels docking at local ports.

Section 8 Lubricant Technical Knowledge (Category B Technical Guide)

Category B · Technical Article: Main Causes of Excessive Engine Oil Consumption & Troubleshooting Sequence

• Worn piston rings: Oil seeps into combustion chambers and burns off, the most prevalent root cause.

• Aged valve stem seals: Oil permeates the valve chamber; valve cover gasket inspection is prioritized for initial checks.

• Improper viscosity grade: Low-viscosity oil incompatible with operating temperature ranges.

Troubleshooting Order: Inspect valve cover gasket first → then check piston rings.

Category A · Quick Reference: Differences Between Highway Vehicle Oils & Stationary Equipment Oils

• Highway vehicle oil: Low viscosity, high detergency, optimized for high-revving variable-torque engines.

• Stationary equipment oil: High viscosity, superior thermal resistance, delivers reliable protection during long idle periods.

• Mixed oil reminder: Blending different lubricant types is not recommended, as it may degrade overall performance.

• Selection Standard: Refer to vehicle operation manuals, which specify SAE viscosity grade and API service classification.