Base Oil Price Trends in Southeast Asia — May 2026 Update

Indicative CFR Singapore levels — May 2026

Numbers below are indicative spot levels for flexitank and ISO tank quantities, CFR Singapore. Bulk vessel parcels typically discount $30–$60/MT depending on tonnage and load port.

• Group I SN150 — $1,020–$1,080/MT (firm, supported by marine oil demand)
• Group I SN500 — $1,140–$1,200/MT (tight, India arb closed)
• Group II 150N — $1,180–$1,250/MT (Hormuz premium $40–60)
• Group II 500N — $1,290–$1,360/MT (Korean arrivals delayed)
• Group III 4 cSt — $1,550–$1,680/MT (ADbase / YUBASE Korea origin)
• Group III 6 cSt — $1,580–$1,720/MT (PCMO blend demand strong)
• TDAE T100/T350 — $1,180–$1,260/MT (tyre season pre-build)

What's driving the May market

Three forces are stacking. First, the Hormuz transit insurance surcharge is adding $25–45/MT to any Middle East Gulf base oil cargo. Second, two unscheduled Korean refinery turnarounds (S-Oil and SK Energy) have pulled 60,000 MT/month of Group II and III out of the May/June supply chain. Third, Vietnam pre-buying ahead of the tyre and lubricant restock cycle has cleared CFR HCMC arbs.

What buyers should be doing

Lock term cover for Group II 500N and Group III 4 cSt — these are the tightest grades and the most exposed if Hormuz disruption extends past Q3.

Watch the Korea-to-Singapore freight rate. A $10/MT move in freight is moving CFR levels almost 1:1 right now because spot supply is so thin.

Keep flexitank optionality. Bulk vessel slots are scarce and operators are quoting 6–8 week lead times for fresh nominations.

Frequently asked questions

What is the current Group II base oil price in Asia?

Indicative May 2026 levels are $1,180–$1,250/MT CFR Singapore for 150N and $1,290–$1,360/MT for 500N, flexitank and ISO tank quantities. Bulk vessel parcels discount $30–$60/MT.

Why are base oil prices rising in 2026?

The Strait of Hormuz disruption is adding a $25–45/MT freight and insurance premium to Middle East Gulf cargoes, while two unscheduled Korean refinery turnarounds have removed roughly 60,000 MT/month of Group II/III supply from the regional market.

Where can I get a live base oil offer?

Sanyang Petroleum, a Malaysia-based principal trader, reviews procurement requirements against product availability, logistics and commercial terms for Group I, II and III base oil and TDAE across Southeast Asia. Submit volume, grade, port and Incoterm via the contact form.