Lubricants Market Morning Report20260722

Global Market Newsletter｜SG Petro Nexus

Section 1: Global Market Updates

Goldman Sachs Warns: Sustained Disruption at the Strait of Hormuz Could Push Brent Crude Above $120/bbl in Q4

In the event of an effective closure of the strait, Goldman Sachs forecasts Brent crude to hit $120/bbl in Q4, with a Q3 projection of $108/bbl.

Brent touched $90 intra‑day on July 21 before retreating at close amid volatile trading sessions.

Heightened geopolitical tensions between the US and Iran continue to skew price forecasts.

US‑linked military bases in the region came under attack, prompting the redeployment of US defence assets.

The Islamic Revolutionary Guard Corps reported strikes against US military bases in Jordan and Bahrain, raising geopolitical risk premiums.

Iran proposed a ceasefire for the strait, while the US requested a partial preliminary agreement first.

Iran put forward a 10‑day ceasefire initiative, which was rejected by the US; Brent crude subsequently fell below $90/bbl.

Section 2: Lubricant Industry News

Nearly 40 Brands Announce Price Hikes Collectively! The Toughest Era for the Lubricant Industry May Have Arrived

Driven by surging raw‑material costs and fierce market competition, multiple lubricant brands are forced to adjust pricing.

Shell Sells Jiffy Lube for USD 1.3 Billion: The US “Quick‑Lube Leader” Changes Ownership

Shell divests Jiffy Lube International to Monomoy Capital Partners. Proceeds will be channelled into core‑business restructuring, with the transaction scheduled for completion in Q4.

OEM Private‑Label Segment Underlying Restructuring: Quality Control Becomes a Core Focus

Hybrid engines demand lubricant specifications entirely different from conventional fuel vehicles; sales of agricultural machinery register strong growth.

China’s lubricant market size is projected to exceed CNY 3500 billion in 2026, with new‑energy‑specific fluids growing at 18%.

Overseas investors remain active, while domestic contract manufacturers face market consolidation. Quality management has become a critical competitive factor.

Section 3: South America Market

Argentina: YPF Divests Its Brazilian Lubricant Subsidiary for Global Strategy Restructuring

YPF Brasil is sold to Usiquímica, holding roughly 2% of Brazil’s market share. YPF retains an 8‑year brand licence and refocuses its investment on the Vaca Muerta shale project in Argentina.

Argentina: Agricultural Machinery Imports Rise by 12%, Bulk Lubricant Sales Up 9% Year‑on‑Year

Driven by the massive‑scale Vaca Muerta shale development with capital inflows exceeding USD 10 billion, demand for imported farm machinery surges.

Brazil: Rio Oil & Gas 2026 Scheduled for 21‑24 September in Rio de Janeiro

Rio Oil & Gas Exhibition (ROG.e) ranks as South America’s premier oil & gas event, a vital branding and sourcing platform. It serves as an economical gateway for Chinese enterprises to expand into the Americas market.

Section 4: Africa Market

Nigeria: Target to Boost Daily Output by One Million Barrels by End‑2026, Up from Current 17,500 bpd

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) states that anti‑oil‑theft measures have cut production losses by 5,000 barrels per day, targeting the one‑million‑barrel daily output increase by December 2026.

Nigeria: Shell’s Bonga North Deep‑Water Project Approved, Peak Capacity at 110,000 bpd; First Production Expected Before the End of This Decade

Shell’s subsidiary secures approval for the offshore Bonga North deep‑water development. The subsea tie‑back project will deliver new upstream growth momentum.

Nigeria: Trans‑Sahara Gas Pipeline Signing in Bagdad Marks New Progress for Gas Exports to Europe

Nigeria, Algeria and Niger signed the Trans‑Sahara Gas Pipeline agreement. The 4,400‑km pipeline will transport gas to Europe via Niger and Algeria.

Section 5: Russia & CIS Markets

Russia Lubricant Exhibition: International Lubricant Week 2026 to Open on 6 November in Moscow

Russia’s largest professional lubricant conference and exhibition, the official event of the Lubricants Market annual summit, covering ten‑thousand‑square‑metre exhibition space.

Russia: Passenger Car Lubricant Shift Towards Full‑Synthetic & Low‑Viscosity Grades

Russia’s passenger car lubricant market keeps transforming. Sales of full‑synthetic oils grow faster than conventional products. Shorter oil‑change intervals for vehicles fuel rising demand for low‑viscosity lubricants.

Section 6: South Asia Market (Including Bangladesh)

India: Diversifies LPG Import Sources to Reduce Reliance on the Persian Gulf; the US Emerges as a Major Supplier

Indian Oil Marketing Companies (OMCs) plan a sharp increase in US‑sourced LPG imports to cut dependency on the Persian Gulf. Shipping restrictions were lifted on 6 July.

Bangladesh: Rapidly‑Growing Lubricant Market Dominated by International Brands

Bangladesh’s lubricant market posts a CAGR of 3–5%, with current volume at 40,000–45,000 tonnes. Overseas brands capture over half the market share; penetration of full‑synthetic lubricants rises steadily.

Bangladesh: Chevron Appoints Rock Energy as Distributor for Caltex Portfolio including Havoline & Delo

Bangladesh: Lubrizol Partners with IMCD to Expand Additive Business; Lubricant Market CAGR Forecast at 3–5%

Section 7: Marine Fuel – Malaysia & Singapore

Singapore: July Bunker Sales Hit 4.2 Million Tonnes, +14% YoY; Port Calls Rise Sharply by 2,481%

Data released by the Maritime and Port Authority of Singapore (MPA): Bunker fuel sales reached 4.2 million metric tonnes in July (up 14% year‑on‑year), with 7,608 vessel calls registered, a 2,481% year‑on‑year increase.

Singapore: Average 380CST High‑Sulfur Fuel Oil at USD 298.5/tonne; Volatile Trading Sessions Persist

Initial arbitrage cargoes from the West failed specification requirements. The low‑sulfur heavy base‑oil market remains tight, with East‑West arbitrage windows still open.

Section 8: Lubricant Knowledge Base

Category A (For End‑Customers)

How to Select the Correct Lubricant Following Your Vehicle Owner’s Manual

1. Check the API service classification first: API SL and above represent superior oil quality grades. SN Plus or higher specifications are preferred.

2. Verify the SAE viscosity grade: Comply with both the SAE viscosity and API performance standards specified in your owner’s manual; check the API rating before viscosity.

3. New vehicles generally require thinner‑viscosity oils; high‑mileage older engines use slightly higher‑viscosity lubricants; hybrid vehicles adopt medium‑viscosity dedicated hybrid oils.

4. Recommended service interval: Replace engine oil every 2 years or 40,000 km, regardless of visible faults, for scheduled maintenance.

Category B (Technical Version)

Understanding Technical Innovations in Full‑Synthetic Lubricants

1. Full‑synthetic oils adopt Group III / Group IV base stocks, delivering better thermal stability than conventional oils, ideal for heavy‑duty and long‑haul driving cycles.

2. Group IV (PAO) base stocks feature low deposit‑forming tendency and outstanding temperature adaptability, serving as core components for premium full‑synthetic formulations.

3. Full‑synthetic lubricants protect engines under extreme temperature conditions, reducing carbon deposits and sludge formation to support energy conservation and emission reduction.

4. Choose branded lubricants with formal certification labelling to avoid misrepresented “full‑synthetic” counterfeit products.