Lubricants Market Morning Report20260723

Global Market Newsletter｜SG Petro Nexus

Global Market Updates

Brent Hits $94 Intraday! Shipping Disruptions at Both Strait of Hormuz and Bab el‑Mandeb Trigger a Sharp Rally in International Crude Prices

On July 22, WTI rose 3.6% to $87.17/bbl, while Brent climbed 2.31% to $93.96/bbl, amid US threats to strike Iran’s Natanz nuclear facility.

Crude imports by a major Asian economy slumped to a ten‑year low, falling 41.3% year‑on‑year in June with inventory draws exceeding expectations.

June imports stood at only 7.12 million barrels per day, with inventory withdrawals of 41 million barrels. Goldman Sachs forecasts the nation may resume aggressive purchases as early as this month.

Nearly 40 lubricant brands announce synchronized price hikes amid dual pressures of surging raw‑material costs and fierce market competition.

Escalating costs for base oils and additives push the lubricant industry into its toughest cycle, prompting price adjustments from multiple brands.

The data‑centre cooling fluid sector hits an inflection point: AI computing power fuels demand while tightening PFAS regulatory policies accelerate industry reshuffling.

Liquid‑cooling supporting materials are moving from back‑stage components into the spotlight. Exits by international players have created supply gaps, while domestic standard frameworks are being rapidly upgraded.

Recycled base oil industry upgrade: expanding from low‑grade industrial fluids into the premium passenger‑vehicle lubricant market.

Previously most re‑refined base oils fed low‑end applications. The current shift sees recycled materials increasingly competing within full‑synthetic engine oils and new‑energy dedicated lubricants.

Lubricant Industry News

2026 Fluid & Grease Manufacturer Summit: Production capacity growing from 10,000 MT to 40,000 MT in five years; rising NEV penetration reshapes the lubricant landscape.

Over 30 enterprises including Jiurun Lubricants and Tom Intelligent Equipment attended the summit. New‑energy vehicle parc exceeds 13%, eroding market share for traditional engine‑oil giants.

Kunlun Lubricants launches its “City‑Specific Strategy” campaign in Kunming, accelerating deep cultivation of regional distribution channels.

Following the Ordos roadshow, the Kunming event targets gasoline engine‑oil regional markets with refined channel penetration and downstream outreach.

Unilub highlights 2026 vehicle‑maintenance trends: digital monitoring and predictive maintenance become mainstream practices.

Fluid maintenance is shifting from reactive oil changes toward proactive asset management, with digital monitoring and predictive maintenance emerging as new industry benchmarks.

South America Market

Argentina: Forex controls and peso devaluation drive up import costs, boosting domestic lubricant capacity‑expansion momentum.

Agricultural machinery imports rise by 12%, farm lubricant consumption grows 9% YoY, with strong market preference for local substitution.

Rio Oil & Gas 2026 will run 21‑24 September in Rio de Janeiro, South America’s premier oil & gas exhibition.

YPF divests its Brazilian lubricant subsidiary to fully refocus investment on the Vaca Muerta shale development project.

Africa Market

Nigeria: Targeting an incremental output gain of one million barrels per day by end‑2026; NUPRC states anti‑oil‑theft operations cut losses by 5,000 bpd.

The Dangote Refinery has commenced operations. Africa’s largest refining project reshapes regional petroleum product supply patterns.

Trans‑Sahara Gas Pipeline agreement signed: Nigeria, Algeria and Niger join forces to export natural gas to Europe.

Stretching 4,400 kilometres, construction is scheduled to kick off in 2027 and will reshape Africa’s oil‑and‑gas infrastructure investment outlook.

Russia Market

Russia’s gasoline output plunges to 65% of normal levels. Drone strikes cripple refineries, prompting Moscow’s emergency fuel redistribution.

Authorities allocate fuel stocks from Siberia and across the country and ramp up imports from Belarus to stabilise supplies for the capital.

Kremlin: Fuel market conditions are improving. President Putin convenes a meeting to assess the effectiveness of stabilisation measures.

Peskov confirmed government interventions have delivered results, though continued close monitoring and multi‑pronged policies remain necessary.

South Asia Market (Including Bangladesh)

India: The world’s fifth‑largest lubricant market with an annual growth rate of 3.7%. The country diversifies LPG import sources to reduce reliance on the Persian Gulf; the US emerges as a key supplier.

Bangladesh: The world’s sixth‑largest edible‑oil economy, hosting the Oil & Fat Expo Bangladesh in Dhaka in November 2026.

Annual edible‑oil consumption hits 3.3 million tonnes with a market value of USD 1.75 billion and a CAGR of 9.79%. The lubricant market maintains a CAGR of 3‑5%.

Malaysia Bunker Market

Malaysia: Port of Maharani will adopt MFM and e‑BDN digital technology to boost transparency for bunker‑fuel delivery operations.

Digital upgrades at Malaysia’s free port will form a dual Southeast Asian bunker hub alongside Singapore.

Houthi threats to close the Bab el‑Mandeb Strait compound risks from Hormuz shipping disruptions, elevating uncertainty over marine‑fuel supplies.

Singapore LSFO average price stands at $298.5/MT, with 7,608 vessel calls (+24.81% YoY) and a continuously expanding LSFO market share.

Lubricant Knowledge Base

Category A (Customer‑Friendly Guide)

What do the numbers in the SAE 5W‑30 engine‑oil designation mean?

SAE stands for the viscosity standard defined by the Society of Automotive Engineers. The letter “W” denotes Winter. The digit before W indicates low‑temperature performance (5W guarantees operability down to ‑30°C). The number after W defines kinematic viscosity measured at 100°C. A smaller prefix number delivers superior cold‑flow properties, while a lower suffix viscosity improves fuel economy at the cost of marginal film protection.

Category B (Technical Brief)

Two core lubrication challenges for turbocharged direct‑injection engines: LSPI and high‑temperature oxidation

Turbocharged gasoline direct‑injection engines carry risks of Low‑Speed Pre‑Ignition (LSPI) and require engine oil with a minimum HTHS viscosity of ≥2.6 mPa·s for adequate protection. In‑cylinder direct injection generates ash deposits and LSPI by‑products that accelerate oil degradation, calling for robust anti‑oxidant additive packages. The API SP specification was specifically engineered to address these two critical challenges.