# Group III Base Oil Imports From the Middle East Stay Near Historic Lows

Date: 2026-10-27

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If you buy synthetic or high-performance lubricants, there is a supply story unfolding overseas that is worth a few minutes of your time. Shipments of premium Group III base oils from the Middle East, a key building block for many synthetic and semi-synthetic lubricants, nearly dried up again in August 2026, according to reporting from Base Oil News. Here is what happened, in plain terms, and what it may mean for the people who keep plants running.

## First, what is Group III base oil?

Base oil is the backbone of nearly every finished lubricant, often making up the large majority of what is in the drum. Group III base oils are highly refined stocks with excellent viscosity stability and oxidation resistance. They are widely used in synthetic and high-performance products: long-life gear oils, hydraulic fluids, compressor oils, and many modern formulations where performance at temperature extremes matters.

For years, refineries in Qatar, the UAE and Bahrain have been among the world's largest exporters of Group III. When those barrels stop moving, buyers everywhere feel it.

## What the numbers show

Based on government trade data compiled by Base Oil News, buyers across the Americas, Europe and Asia received fewer than 7,000 tonnes of Group III from those three Middle East suppliers in August. That is down from more than 22,000 tonnes in July and marks the second-weakest month in over six years, behind only June.

To put that in perspective: in the first quarter of 2026, those same flows routinely topped 220,000 tonnes a month. Since disruption in the region began limiting shipments in April, monthly volumes have averaged under 12,000 tonnes from June through August. That is a drop of roughly 95 percent.

Some cargoes to Europe and the US resumed in September, but only sporadically, and some reportedly had to be moved onto different vessels at Indian ports along the way. Irregular flows like that suggest a full return to normal is not right around the corner.

## Why the US is feeling it most

The Middle East had supplied more than 40 percent of US Group III imports. Europe and Asia have some domestic or regional Group III production to lean on. The US, by contrast, still imports most of its Group III. According to the report, the US share of Middle East premium-grade shipments fell from around 40 percent in 2024 and 2025 to less than 3 percent in the four months through August.

The gap has been partly filled by cargoes from South Korea, India and China. India's base oil exports, and its shipments to the US specifically, both hit record highs in August, with more than half of India's exports that month heading to American buyers. China's shipments to the US climbed to their second-highest level on record in September. Even so, those extra Asian barrels have not fully replaced what was lost, and US refiners have been keeping more of their own output at home.

## Prices and the ripple effect

When a major supply source disappears, buyers compete for what is left. Base Oil News reports that Group III prices rose sharply and are expected to hold a steep premium over other base oils for as long as Middle East supply stays constrained. The shortage has also spilled beyond the premium-grade segment as buyers scramble for substitute barrels and refiners send supply wherever it earns the most.

There is a hopeful note: new US Group III capacity is expected to start up in the coming months. That should reduce, though not eliminate, America's dependence on imported premium base oils.

## How does this impact Lubri-Loy?

Lubri-Loy has been blending in the USA since 1949, and our industrial lubricants, food grade H1 greases and oils, gear, hydraulic, compressor and penetrating oils, and synthetics are made by US contract blenders. That US-based supply chain is a real advantage when global shipping lanes get unpredictable. Still, every blender in the country draws from the same base oil market, so general market conditions like these can affect availability and pricing across the industry, particularly for synthetic and high-performance products that rely on Group III stocks.

We know from talking with plant maintenance teams, food and beverage processors and distributors that stock-outs and long lead times are the problems that hurt most. A missing pail of the right gear oil or H1 grease can mean an idle line. In a tight market, the best protection is simple:

- **Plan ahead.** Look at your PM schedule for the next quarter and order the synthetics and specialty fluids you know you will need before you need them.
- **Keep a buffer.** A modest safety stock of critical lubricants, especially food grade and synthetic products, helps you ride out longer lead times.
- **Standardize where you can.** Consolidating to fewer, well-chosen products makes planning and stocking easier.
- **Talk to us early.** If you are reviewing a substitution or a large order, our team can help you think it through.

You can now order direct on lubriloy.com with free shipping, and qualified business customers can use Net 30 credit terms, which makes it easier to stock up responsibly without straining cash flow.

## The bottom line

The Group III shortage is a reminder that what happens at a refinery halfway around the world can show up on your maintenance budget. Staying informed and ordering with a little more lead time goes a long way.

**Ready to plan ahead?** [Shop direct on lubriloy.com](https://lubriloy.com) with free shipping, or contact Lubri-Loy for a quote. For technical support, call 636-561-5007.

*Source: [Global Group III Imports From Middle East Fall Further In August](https://www.baseoilnews.com/europe-mideast-gulf-africa/mideast-gulf/global-group-iii-imports-from-middle-east-fall-further-in-august), Base Oil News, October 27, 2026.*
