Why have Chevron and Motiva reduced deliveries of Group III and II base oils to the minimum contractual levels?

Chevron Corp. and Motiva Enterprises LLC have curbed deliveries of Group III and II base oils to the lowest possible contractually obligated levels due to severe supply disruptions in the global base oil market triggered by the ongoing Iran war, which has thrown this niche segment of the crude market into disarray; sources noted that supplies of Group III oil were particularly limited and that such a drop to minimum delivery levels is unprecedented, even compared to one-off refinery outages.

What is the significance of Group III base oil, and why is its shortage especially impactful?

Group III base oil is a key ingredient for high-end motor oil and a broad range of lubricants, and its global supply has come under extreme stress since the outbreak of the Iran war; Group III base oil prices are at record highs according to Argus Media, and the US imports 44% of its Group III oil from the Middle East — a supply chain severely affected by damage to Shell Plc’s Pearl GTL facility in Qatar during Iranian attacks in March.

Chevron, Motiva Curb Deliveries of Key Motor Oil Feedstock

May 19, 2026

Chevron and Motiva have reduced base oil deliveries to minimum levels due to supply disruptions from the ongoing Iran conflict. Global base oil supplies face extreme stress, with Group III prices hitting record highs amid refinery damage in the Middle East.

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