Lubricant Oil Manufacturing in the US - Industry Market Research Report

Slippery Slope: Declining Crude Oil Prices Will Constrain Industry Selling Prices, Resulting in Muted Growth

Lubricant oil manufacturers primarily produce petroleum-based lubricant and grease products, such as blended motor oils, brake fluids and lubricating grease, linking industry demand to the volatile prices of crude oil. Despite steep fluctuations in oil prices, oil production continued and surpluses developed. Global crude oil production also remained steady, exacerbating the supply build-up and putting additional pressure on prices. Due to these factors, lubricant production slowed early through the end of 2023 and lubricant oil manufacturers took on the financial burden. This reversed in 2021 and 2022 as oil prices rose, which pushed up industry revenue and contributed greatly to the overall rise. Still, oil prices decreased amid the COVID-19 pandemic and are currently decreasing in 2023, mitigating growth. Lubricant oil manufacturing revenue has inched upward at a CAGR of 0.5% to $28.4 billion over the past five years, pushed down by a 1.4% decrease in 2023 alone. Operators in this industry manufacture petroleum products (except for asphalt-paving, roofing and saturated materials), such as blended motor oils, brake fluids, lubricating grease and other oil-based additives. Key buyers include downstream automobile manufacturers, wholesalers and automotive retail chains. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.