GCC Base Oil Market Outlook

gcc base oil markets are looking at a period of considerable dynamism, with a number of drivers poised to affect the outlook in the 2018 to 2032 timeframe. in the short-term, the implementation of an opec production cut agreement, which started in january of 2018, could affect the overall market situation in the gcc region. additionally, as certain projects come to fruition in the region, such as upbucket plants, new refining capacity, and expansion projects, there could be a corresponding uptick in the demand for base oil. at the same time, stronger enforcement as regards environmental impact regulations could lead to increasing attention to the use of higher quality base oil in the region; this could have ramifications for traditional fuel oil markets, as well as the overall picture for the gcc base oil market. in the medium to long-term, however, economic growth within the gcc region, combined with the increasing attention towards automotive pollution control solutions, are expected to lead to greater demand for base oil. additionally, the region should benefit from advancements elsewhere in the world in the field of base oil technology; for instance, the development of biolubricants can be expected to lead to increased interest in this market segment. furthermore, the continuing development of alternative energy sources such as solar and wind power, as well as other technologies, such as electric and hybrid vehicles, could have a transformational effect on the regional base oil market. in particular, a shift from traditional oil-based products towards lower-carbon solutions could serve to significantly change the landscape. ultimately, the sheer size and economic clout of the gcc region means that it is likely to always be a major influence when it comes to the global base oil market. the shape that this market will take, however, will depend on the ability of the region to not only adapt to changing market trends, but to remain a leader in terms of developing new and emerging technologies. as such, the outlook for the base oil market in the gcc region looks set to remain in a state of flux in the 2018 to 2032 timeframe.