Base oil is a key raw material used to make lubricants for vehicles, machinery, and industrial equipment. From engine oils to hydraulic fluids, base oil plays a vital role in keeping machines running smoothly. Because base oil demand is closely tied to transportation, manufacturing, and industrial activity, changes in its price often reflect broader economic conditions. In Q3 2025, the Base Oil Price Trend across global markets showed a mostly bearish tone, with prices under pressure in many regions.

During the third quarter of 2025, global base oil prices moved in a wide range, with quarterly changes varying from a decline of around 6.90% to an increase of about 2.82% in certain markets. This wide range highlighted how regional supply-demand conditions strongly influenced pricing. Overall, however, the global market leaned toward softness due to oversupply, low seasonal demand, and cautious buying behavior.

One of the main reasons behind the weak Base Oil Price Trend in Q3 2025 was oversupply. Many refineries continued to operate steadily, producing sufficient volumes of base oil. At the same time, demand from lubricant blenders remained moderate. When supply exceeds demand, prices naturally face downward pressure, and this was clearly visible during the quarter.

Taiwan and Saudi Arabia experienced the most significant price declines. In these regions, high availability of base oil combined with weak downstream demand weighed heavily on prices. Lubricant manufacturers reduced purchasing volumes, either due to slower sales or adequate inventory levels. This imbalance between supply and demand resulted in noticeable price reductions.

Other Asian markets such as Singapore, South Korea, and Indonesia also recorded moderate price declines. These markets faced similar challenges, including oversupply and cautious procurement. Buyers in these regions focused on short-term needs rather than building inventory, which limited market activity and kept prices under pressure.