Base Oils Disrupted: War-Driven Supply Tightness

About this episode

This episode discusses the impact of the US–Iran conflict and the closure of the Strait of Hormuz on global base oil markets.

In this special edition episode, we discuss the impact of the US–Iran conflict and the closure of the Strait of Hormuz on the global base oil markets. Even as trade flows evolve, Group III supply remains limited, driving price spikes in the US and Europe. Market participants look towards Asia as supply is showing signs of a recovery and China’s growing output is reducing its reliance on imports. We examine shifting arbitrage, demand erosion from high prices, and the near-term supply outlook amid persistent geopolitical uncertainty.

People in this episode

Host: Argus Media

Topics covered

• base oil markets
• geopolitical impact
• supply chain disruption
• price spikes
• trade flows
• arbitrage
• demand erosion

Keywords

• base oils
• supply tightness
• price spikes
• geopolitical uncertainty
• Group III supply
• China output
• trade flows

Mentioned in this episode

Places: US, Iran, Strait of Hormuz, Asia, China

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