Petroleum products

Base Oils Trading

Base oils are the refined mineral stocks that form the bulk of finished lubricants. 3FB Energy & Trade trades Group I, II and III base oils on FOB and CIF terms, coordinating independent inspection, shipping and documentation for each cargo.

What are base oils?

Base oils are refined petroleum stocks used as the main component of lubricating oils, to which additives are blended to make finished products. The American Petroleum Institute classifies them into groups: Group I (solvent-refined), Group II and Group III (hydroprocessed, with higher purity and viscosity index), alongside synthetic Group IV and V. 3FB Energy & Trade trades Group I, II and III base oils on FOB and CIF terms.

Product overview

Base oils are produced by refining the appropriate crude oil fractions, either by solvent refining or by hydroprocessing. They are characterised by viscosity, viscosity index (the measure of how viscosity changes with temperature), pour point, flash point and colour.

The API group classification reflects purity and performance: Group I is solvent-refined; Group II and Group III are hydroprocessed, offering higher saturate content, lower sulphur and, for Group III, a high viscosity index. Individual cuts are described by a viscosity designation such as SN 150, SN 500 or a bright stock.

Typical specifications

ClassificationAPI Group I / II / III base stocks
Common cutsSN 150, SN 500, SN 150BS / bright stock, per grade
Kinematic viscosity at 40 °Cgrade dependent
Viscosity indexapprox. 95–105 (Group I/II); 120+ (Group III)
Pour pointtypically -9 °C or lower, per grade
Flash pointtypically above 200 °C, per grade
Sulphurhigher in Group I; low in Group II/III
Colour (ASTM D1500)per grade

Indicative typical values shown for orientation only. Exact quality is cargo-dependent and the final contractual specification, as confirmed in the sales agreement and verified by independent inspection, prevails.

Commercial relevance and typical uses

Base oils are the foundation of finished lubricants, usually making up the majority of a blend before additives. They are used by lubricant blenders to manufacture engine oils, industrial and hydraulic oils, greases, metalworking fluids and process oils.

Group selection follows the finished product's performance requirements: Group I remains in use for many industrial oils, while Group II and III are preferred where higher oxidation stability and viscosity index are needed, such as in modern engine oils.

Quality and independent inspection

An independent inspector samples base oil and tests viscosity, viscosity index, pour point, flash point, colour and related parameters against the agreed grade, issuing a certificate of quality, and verifies the shipped quantity. Clean handling matters because base oils are sensitive to contamination. 3FB coordinates inspection; SGS and Intertek are given only as examples of firms used in the sector, not partners.

See inspection and how independent inspection works.

Shipping and logistics

Base oils move in clean tankers, in flexitanks within containers, or in new drums and IBCs for smaller parcels. 3FB trades on FOB terms, where the buyer arranges carriage, and on CIF terms, where 3FB arranges freight and insurance to the discharge port, as explained in FOB versus CIF.

A delivery window is agreed as a laycan, and tank or packing selection accounts for cleanliness to protect specification. See shipping and logistics.

Trade documentation

A base oil cargo carries the bill of lading, certificate of origin, certificate of quality and certificate of quantity from the inspector, a packing list where drums or IBCs are used, and the commercial invoice, with payment commonly under a documentary letter of credit.

The bill of lading and letter of credit notes cover these instruments.

Buyer inquiry process

To request an indication, state the group and viscosity cut (for example Group II SN 150 or SN 500), the volume, the packing (bulk, flexitank, drums or IBCs), the delivery terms (FOB or CIF with the port), the laycan and the payment instrument. The desk reviews feasibility and responds with an indicative offer, subject to confirmation.

KYC and compliance review precede any definitive agreement. Start at the trading desk.

Frequently asked questions

What is the difference between Group I, II and III base oils?
Group I is solvent-refined with higher sulphur and aromatics. Group II and III are hydroprocessed with higher purity; Group III also has a high viscosity index. The groups are defined by the American Petroleum Institute.
What does SN 150 or SN 500 mean?
These are common base oil cuts identified by a solvent-neutral viscosity designation; the number indicates the relative viscosity of the cut used in blending.
What are base oils used for?
They are the main component of finished lubricants such as engine oils, hydraulic and industrial oils, greases and metalworking fluids, blended with additives.
On what terms does 3FB trade base oils?
On FOB and CIF terms. See FOB versus CIF for how each allocates freight and insurance.
How are base oils shipped?
In clean tankers for bulk parcels, or in flexitanks, drums or IBCs for smaller quantities, with cleanliness controlled to protect specification.
How is a base oil trade paid?
Commonly through a documentary letter of credit payable against shipping and quality documents. See trade finance.

Request base oils availability

State the group and viscosity cut, volume, packing, delivery terms, laycan and payment instrument. The desk will respond with an indication.

Request base oils availability