The largest cars worldwide seeking alternatives to cope with serious shortage lubricants motor, as the effects of the conflict in the Middle East have disrupted the supply of a critical raw material.
At the centre are the Group III base oilS, a highly processed petroleum product used in the production of lubricants for a high-quality engine for which motor vehicles in Europe and the USA arethe specific raw materials from the Middle East were heavily fedHowever, stocks are now exhausted after the disruptions in the supply chain.
The situation deteriorated in March, when Iranian rockets hit its large facility Shell in Qatar, which produces products through gas-to-liquids technology, The facility needed important repair work, while Shell customers were served in an effort to secure alternative supplies.
Group III base oil prices, as reported by the Financial Times, have almost tripled over pre-war levels, reaching about $4,000 per tonne in Europe and the USA.
Although car manufacturers have started looking for other suppliers, the quantity available remains limited. The Head of Independent Lubricant Manufacturers Association, Holly Alfano, warned that new transport disturbance, a problem in a refinery or any other shock in the offer could quickly aggravate the situation.
The alternative approach
Limited availability also concerns alternative suppliers. Gabriela Twinning, global head of base oil pricing in Argus Media, reported that certain suppliers Group III base oils from the Middle East to Europe and the USAalready exhausted their reserves and have declared force majeure (reasons for force majeure) for these supplies.
Even in the event of an immediate reopening of transport through the Straits of Hormuz, according to Twining, Europe and the US are not expected to receive new quantities before October, the earliest.
In the face of the risk of further deterioration, car manufacturers have moved to ensure alternative amounts of lubricants. However, switching suppliers is not a simple process, as the new compositions must maintain the same levels of quality and performance as the products used to date, and the relevant approval is required.
The Stellantis announced he assessed «Reformed lubricants» and secured alternative products meeting applicable industry standardsThe Volkswagen described the lack of these basic oils problem relating to the entire car industry and is beyond direct control of individual manufacturers.
However, it has at present secured the necessary quantities and examines additional sources of supply that meet the technical specifications and quality requirements. And the Toyota has been affected by the situation, but has already secured alternative supplies.
Japan pressured
In Japan, however, the effects are becoming more felt.th. Since June, customers in delegations Suzuki Motor face delays in planned engine oil changes. Company CEO Toshihiro Suzuki told shareholders that the company examines its entire supply chain and differentiates the suppliers of these basic oils.
The lack has also affected prices. Taxi company in Osaka said the supply situation has improved slightly, however basic oil prices have doubled, which led to an increase in taxi prices for consumers.
Although many car manufacturers have secured alternative supplies for the time being, analysts warn that the situation may change at any time.
The market concentration has limited the number of available suppliers, while countries that could function as alternative sources, such as South Korea, have failed to secure normal quantities of crude oil.
Thus, the global oil market now operates with very small safety margins, while a new disruption in production or transport could intensify the shortage, further increase costs and cause new delays in vehicle maintenance operations.
