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Automakers face engine oil shortage as base oil prices triple
Global automotive manufacturers are facing a critical shortage of high-quality Group III base oils, a vital component for engine lubricants. This supply chain crisis has been exacerbated by conflicts in the Middle East, specifically following an Iranian missile strike on a Shell gas-to-liquids facility in Qatar in March.
As stocks of these essential raw materials deplete in the United States and Europe, prices for Group III base oils have surged to approximately $4,000 per ton, nearly tripling pre-war levels. Major industry players, including Volkswagen, Stellantis, and Toyota, are reportedly exploring alternative lubricant formulas to maintain production and vehicle maintenance services.
Industry experts, including Holly Alfano of the Independent Lubricant Manufacturers Association, warn that the sector is operating with a minimal margin for error. While companies are seeking alternative suppliers, capacity remains limited, and any further disruptions in shipping or refinery operations could intensify the crisis.
Entities
Independent Lubricant Manufacturers Association · Shell · Stellantis · Toyota · Volkswagen
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] Major automakers including Volkswagen, Stellantis, and Toyota are seeking alternative lubricant formulas. www.cnbce.com
- [● 3 SOURCES] In March, Iranian missiles struck a Shell gas-to-liquids (GTL) facility in Qatar, causing significant damage. www.cnbce.com · www.ot.gr · www.newsit.gr
- [○ 1 SOURCE] Some Middle Eastern suppliers of Group III base oils to Europe and the US have declared force majeure. www.newsit.gr
- [● 3 SOURCES] The price of Group III base oils in Europe and the US has nearly tripled to approximately $4,000 per ton. www.cnbce.com · www.ot.gr · www.newsit.gr
- [● 3 SOURCES] Alternative suppliers have limited capacity and the industry is operating with a very small margin for error. www.cnbce.com · www.ot.gr · www.newsit.gr
- [● 3 SOURCES] Global automakers are facing a shortage of high-quality Group III base oils used in engine lubricants. www.cnbce.com · www.ot.gr · www.newsit.gr