Industry News
Stay informed on lubricant market trends, pricing updates, and industry developments. We curate the latest news from trusted industry sources to keep our customers ahead of market changes.
Strait of Hormuz Closure
Market Update: Group III supply recovery may extend beyond initial expectations. Industry indicators suggest synthetic lubricant supply chains could face continued pressure well into 2027. Contact us for current pricing and availability.
June 2026 Market Report
The International Energy Agency Has Declared This Period As The "Largest Supply Disruption In The History Of Oil Markets"
Global oil supply routes face unprecedented disruption as the Strait of Hormuz closure impacts 20% of world oil consumption.
Overview
Concerns about the duration of the current Group III base oil disruption are continuing to grow as lubricant manufacturers, distributors, and industry groups assess the longer-term implications of ongoing Middle East supply and shipping instability. While market conditions remain fluid, several industry indicators now suggest the synthetic lubricant supply chain could face continued pressure well beyond 2026.
The Independent Lubricant Manufacturers Association (ILMA) recently noted that significant new North American Group III production capacity currently under development is not expected to begin coming online until approximately 2027, limiting the industry's ability to rapidly replace disrupted import volumes in the near term. ILMA also stated that existing domestic production is not positioned to fully offset supply disruptions tied to Middle East refinery outages and logistical challenges affecting the Persian Gulf region.
The issue is particularly significant for modern low-viscosity synthetic engine oils, including many 0W-16 and 0W-20 formulations that rely heavily on Group III base oils. Industry impacts are already becoming visible through additional lubricant price increases, allocations, emergency API formulation relief measures, and tighter availability for certain synthetic lubricant products.
Despite growing concern, industry sources caution that market conditions could improve if geopolitical tensions ease, refinery operations stabilize, and global shipping routes normalize. Still, the increased focus on 2027 capacity timing reflects growing concern that recovery could take longer than many initially expected.
Refinery Economics Impact
Refineries are prioritizing diesel production over base oils due to high diesel crack spreads. The lubricant cut represents only about 1% of a barrel of crude, making it particularly vulnerable to refinery production decisions focused on maximizing profitability from higher-demand products like diesel.
This shift results in reduced base oil supply, higher prices, and increased competition for limited availability. The lubricant market becomes dependent on broader energy market dynamics.
Key Impact: Both diesel and base oils are middle distillates from similar refinery processes. With diesel commanding higher prices, refineries are shifting production away from base oils.
Additive Supply Chain Disruptions
Chemical additive supply chains face 3-6 month disruptions. Major additive manufacturers have announced significant surcharges, with Lubrizol and Evonik implementing surcharges of at least $400 per metric ton, and Infineum at $360 per metric ton.
Common Lubricant Additives
From left: Moly Compound (anti-wear), ZDDP (anti-wear/antioxidant), Phenolic AO (antioxidant), OCP (viscosity modifier), PMA (pour point depressant)
Latest Price Increase Announcements
Updated: June 4, 2026Source: JobbersWorld - Lubricant Price Adjustments
Upcoming Announced Increases
| Company | Increase Amount | Effective |
|---|---|---|
| HF Sinclair (Petro-Canada Lubricants US & Canada) | Up to 25%, with some products outside stated range | June 10, 2026 |
Currently In Effect
| Company | Increase Amount | Effective |
|---|---|---|
| TotalEnergies Marketing USA | Mineral: +$2.60/gal; Greases: +$0.29/lb; Synthetics: +$3.70/gal | May 26, 2026 |
| Highline Warren | Group II: up to $2.40/gal; Group III: up to $3.00/gal | May 22, 2026 |
| Omni Specialty Packaging | Synthetic: +$3.00/gal; Other Oils: +$2.40/gal; Brake/AF: +$1.00/gal | May 22, 2026 |
| Martin Lubricants | Up to 26%; allocations in effect for PCO, HDO, SynGard | May 22, 2026 |
| Castrol Automotive & Heavy-Duty | Up to 15%, with some products higher | May 20, 2026 |
| AOCUSA | Synthetic: +$3.70/gal; Blend: +$2.60/gal; Conv: +$2.20/gal; Grease: +$0.25/lb | May 18, 2026 |
| Chevron | Up to 30% across lubricating oils, greases, and coolants | May 18, 2026 |
| Martin Lubricants | Up to 15% (SynGard, Xtreme, Gard brands) | May 8, 2026 |
| ExxonMobil | Up to 30% | May 4, 2026 |
| Petro-Canada Lubricants (Canada) | Up to 35% | May 4, 2026 |
| HF Sinclair / Petro-Canada (U.S.) | Up to 35% | May 4, 2026 |
| Shell (SOPUS) | Up to 25% (Non-Janus pricing) | May 1, 2026 |
| Castrol (BP Lubricants USA) | Up to 15% (excludes select products) | May 1, 2026 |
| CAM2 International | Economy: $3.50/gal; Synthetic: $5.00/gal; Other: $4.00/gal | Apr 27, 2026 |
| ALS | Additional adjustment (product-level details not disclosed) | Apr 27, 2026 |
| Chevron | Up to 25% | Apr 24, 2026 |
| Omni Specialty Packaging | +$3.75/gal non-synthetic; +$5.00/gal synthetic | Apr 21, 2026 |
| Highline Warren | Group II: up to $2.74/gal; Group III: up to $3.00/gal; national branded up to 30% | Apr 20, 2026 |
| Phillips 66 | Up to 35% | Apr 20, 2026 |
| TotalEnergies Marketing USA | Up to 15% (mineral oils & greases); up to 18% (synthetics) | Apr 20, 2026 |
| CITGO Petroleum Corporation | TBA | Apr 20, 2026 |
| Petro-Canada Lubricants (Canada) | Up to 10% | Apr 20, 2026 |
| ALS | 10%–15% | Apr 20, 2026 |
Initial Price Increase Announcements (as of 3/27/26)
| Company | Product | Increase | Effective |
|---|---|---|---|
| Chevron (US) | Certain Products | Up To 15% | Apr 1, 2026 |
| ExxonMobil (US) | All Lubricants & Greases | Up To 12% | Apr 15, 2026 |
| Petro-Canada (US) | All Lubricants & Greases | Up To 15% | Apr 13, 2026 |
| Shell (US) | All Lubricants & Greases | Up To 15% | Apr 15, 2026 |
| Phillips 66 (US) | All Lubricants & Greases | $0.65-$0.85/gal | Apr 1, 2026 |
| Calumet | All Lubricants & Greases | Up To 20% | Apr 4, 2026 |
* Contact Leahy-Wolf for current pricing.
JobbersWorld has tracked 30+ price increase announcements since March 11, with cumulative increases approaching 30% and up to $5.00/gallon on synthetics. At least 11 suppliers—including Chevron, Shell, ExxonMobil, and Phillips 66—have issued multiple rounds with exceptionally tight lead times, some implemented within days.
Read full article at JobbersWorldThe spring 2026 base oil price surge has created severe Group III supply constraints. This article provides a practical Stage Gate Framework to help blenders and distributors evaluate their product portfolios and allocate scarce Group III supply where it truly matters. Key insight: risk is highly concentrated in a small number of products like 0W-20 PCMO, while much of the market retains more flexibility than commonly assumed.
Read full article at JobbersWorldComprehensive tracking of lubricant price increases with detailed tables showing in-effect and upcoming announced increases from major suppliers including Smitty's Supply, Highline Warren, Chevron, Shell, ExxonMobil, and more. Synthetic lubricants seeing increases up to $5.00/gallon.
Read full article at JobbersWorldIn-depth analysis of the Spring 2026 price surge driven by geopolitical tensions affecting base oil supply. Base oils, particularly Group III synthetics, have seen cumulative increases approaching $2.00/gallon. The article breaks down cost pressures across the supply chain including additives and logistics.
Read full article at JobbersWorldThe pace and scale of lubricant price increases continue to build with fresh announcements from AOCUSA, Castrol, SOPUS/Pennzoil, Chevron, and Omni. Increases range from 15% to 30%, with synthetic products seeing the largest adjustments. The market is shifting to a continuous repricing environment.
Read full article at JobbersWorldCastrol announced increases of up to 15% effective May 1, 2026. AOCUSA implemented an additional 83¢/gallon increase on lubricants, bringing their total increase to $1.31/gallon. Summary tables track all announced pricing actions from major manufacturers.
Read full article at JobbersWorldAbout Our News Sources
We curate industry news from JobbersWorld, the first and only independent newsletter focused on lubricant distributors, published by Petroleum Trends International. Their coverage provides valuable insights into pricing trends, market dynamics, and industry developments.
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