Procurement Market Intelligence Report
Hydraulic Oil
Sourcing Guide & Market Intelligence
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Hydraulic Oil Global Overview
Definition
Summary
Hydraulic oil is a type of lubricant, but it is also a power transfer device used in hydraulic machinery, such as brakes, steering columns, lifts, tools, and transmissions. Hydraulic oil is either synthetic (water-based) or mineral-oil based. Common suppliers are petroleum refiners and industrial equipment wholesalers and retailers, while key buyers include operators in the automotive and manufacturing industries. This report does not include motor oil, automotive greases or other petroleum products.
This Report Includes:
- Synthetic Hydraulic Oil
- Mineral-oil Based Hydraulic Oil
Not in this Report:
- Motor Oil
- Automotive Greases
- Other Petroleum Products
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Global Hydraulic Oil Procurement Trends
Discover the top international trends affecting procurement in the global Hydraulic Oil market.
Warning Trends
Tariffs on fuel additives, lubricants, and anti-corrosive materials to increase costs in the sector
- On August 1, the Trump Administration finalized sweeping tariffs on most major US import partners, in addition to the already announced 25.0% and 35.0% tariffs on Mexico and Canada, and a 10.0% tariff on energy imports from Canada. According to the Energy Information Administration, Canada and Mexico account for 71.2% of US crude oil imports, 35.7% of US petroleum product imports, and 99.6% of US natural gas imports.
- These tariffs will increase both the cost of importing fuel additives, lubricants, and anti-corrosive materials and the cost of sourcing primary inputs necessary for making these products, affecting both international and domestic suppliers. However, reduced oil and gas demand tied to higher tariffs and a possible economic slowdown may counteract some of the tariff price increases in this market.
- Tariffs on steel and aluminum and falling oil prices are also increasing vendor risk for upstream suppliers in the sector; according to the New York Times, tariffs on steel have pushed up the cost of new oil and gas wells by 10.0% to 20.0%. According to S&P Global, oil country tubular goods, made from steel, are anticipated to rise 15.0% in price with the increase in tariffs, and because these expenses account for 8.0% to 10.0% of drilling and completion costs, the fuel additives, lubricants, and anti-corrosive materials supply chain will see increased risk of disruption.
Neutral
Crude oil prices dip, but natural gas and fuel prices remain volatile in 2025
- Oil prices have been falling with the introduction of higher tariffs and the predicted decline in global demand. The OPEC+ group of countries also announced they would be unwinding production cuts and increasing their collective output target for May by 411,000 barrels per day.
- Trade wars, ongoing conflict between Hamas and Israel, and general unrest in the Middle East are causing uncertainty surrounding oil prices, which has led to volatility in prices. In the third week of May 2025, crude oil prices hit $63.67 per barrel, but volatility remains as geopolitical concerns remain.
- Natural gas prices rallied early in 2025 with colder-than-usual temperatures in the United States and high demand, topping out at $4.68/MMBtu in March. Prices have since fallen with the onset of trade wars and weakening demand projections to $3.64/MMBtu in the third week of May 2025.
- The national average of gasoline prices has been rising slightly due to refinery maintenance/outages and blending issues, hitting a national average of $3.15 per gallon in the third week of May 2025. However, gasoline futures have been volatile, falling due to fears of oversupply and deepening concerns about weakening demand with tariffs, but rising after trade deals.
Global Hydraulic Oil Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 2,370 |
| #2 India | 1,055 |
| #3 Europe | 940 |
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Geography Drilldown - US
Average Cost of Hydraulic Oil
United States
2026 Market Pricing$1,300.00 to $X,XXX.XX
per 55-gallon drumAverage Price
Prices in the Hydraulic Oil market range from $1,300.00 to $X,XXX.XX, depending on Base Stock, Grade of Oil, Fluid Viscosity Index (VI), Additives and Operating Temperature Range. For example, lower prices are associated with Petroleum-based ($400 to $1,500 per 55-gallon drum) and Mineral oil ($400 to $1,500 per 55-gallon drum), whereas higher prices are associated with Polyalphaolefins ($600 to $2,600 per 55-gallon drum), Phosphate esters ($600 to $2,600 per 55-gallon drum) and Synthetic-based ($600 to $2,600 per 55-gallon drum).
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Hydraulic Oil Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Hydraulic Oil market, prices in the US have grown 2.3% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Cost Analysis - Total Cost of Ownership for Hydraulic Oil
Total cost of ownership is Low in the Hydraulic Oil market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Restocking may raise the total cost of ownership unexpectedly.
Negotiated Before
Pre-evaluation
Implementation
Other Fees
Billed During
Disposal
Storage
Inspections
Unforeseen
Restocking
Spoilage
Hidden Fees
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -2.4 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Product Specialization. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
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- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as High, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Oil Pipeline Transportation Providers
- Organic & Inorganic Chemical Manufacturers
- Oil & Gas Field Operators
2nd
Tier Suppliers
- Metal Pipe & Tube Manufacturers
- Synthetic Base Stock Manufacturers
- Chemical Additive Manufacturers
- Crude Oil Refining Companies
Biggest Hydraulic Oil Suppliers in the US by Revenue
The largest Hydraulic Oil vendors by revenue in the US are Fuchs Group, Valero Energy Corp and Marathon Petroleum Corporation. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Exxon Mobil Corporation | Global | SPRING | >10,000 | 10-15 | ||||
| Royal Dutch Shell Plc | Global | LONDON | >10,000 | 10-15 | ||||
| Bp Plc | Global | LONDON | >10,000 | 5-10 | ||||
| Valvoline Inc. | Global | Lexington, KY | 1,001-10,000 | 5-10 | ||||
| TotalEnergies SE | Courbevoie | >10,000 | < 5 | |||||
| Chevron Corp | Global | HOUSTON, CA | >10,000 | < 5 | ||||
| Phillips 66 Co | Global | HOUSTON, TX | >10,000 | < 5 | ||||
| Marathon Petroleum Corporation | International | FINDLAY | >10,000 | < 5 | ||||
| Valero Energy Corp | Global | SAN ANTONIO, TX | 1,001-10,000 | < 5 | ||||
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Profit Analysis
The average profit margin across vendors in the Hydraulic Oil market is 4.7% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The hydraulic oil market exhibits a medium level of market share concentration, as the market’s largest companies, including BP, ExxonMobil, Shell, and Valvoline, are all multinational crude oil conglomerates that extract and refine oil and distribute a range of oil-based products.
On average, the level of financial risk that suppliers of hydraulic oil face is low, which benefits buyers seeking long-term relationships with their suppliers. Although suppliers tend to have high operating costs and vulnerability that hinges on oil prices, many large manufacturers, such as Shell, BP, and ExxonMobil, have assets significant enough to allow them to operate with negative profit margins for some time.
Supply chain risk is high in this market due to the increased risk associated with oil refiners and oil and gas field operators.
The United States is a net exporter of hydraulic fluid, signifying a strong domestic production base. This suggests domestic suppliers can adequately meet demand, which could result in competitive pricing for buyers; however, reliance on domestic supply may expose buyers to potential price volatility influenced by changes in the domestic oil and gas sector.
Supplier Information
Exxon Mobil Corporation
Exxon Mobil Corporation is a public company operating globally in the mining, manufacturing, manufacturing and finance and insurance sectors. The company's offerings include refining catalysts, plasticizers, paraffins, lubricating oils, synthetic resins. Founded in 1999, the company is currently headquartered... Subscribe to learn more
Royal Dutch Shell Plc
Royal Dutch Shell Plc is a public company operating globally in the manufacturing, manufacturing, finance and insurance and other services (except public administration) sectors. The company's offerings include refining catalysts, lubricating oils, jet fuel, diesel fuel, gasoline. Founded in 1907, the company... Subscribe to learn more
Bp Plc
Bp Plc is a public company operating globally in the manufacturing, manufacturing and finance and insurance sectors. The company's offerings include lubricating oils, jet fuel, diesel fuel, gasoline, bunker fuel. Founded in 1909, the company is currently headquartered in London, United Kingdom with an estimated... Subscribe to learn more
Valvoline Inc.
Valvoline Inc. is a public company operating globally in the manufacturing sector. The company's offerings include lubricating oils, diesel exhaust fluid (def), hydraulic oil and antifreeze. Founded in 1866, the company is currently headquartered in Lexington, Kentucky, United States of America with an estimated... Subscribe to learn more
Chevron Corp
Chevron Corp is a public company operating globally in the manufacturing and finance and insurance sectors. The company's offerings include lubricating oils, synthetic resins, jet fuel, diesel fuel, gasoline. Founded in 1879, the company is currently headquartered in SAN RAMON, California, United States of... Subscribe to learn more
Citgo Petroleum Corp
CITGO Petroleum Corporation is a private company operating nationally in the manufacturing sector. The company's offerings include lubricating oils, gasoline, hydraulic oil and greases. Founded in 1910, the company is currently headquartered in Houston, Texas, United States of America with an estimated 3400... Subscribe to learn more
Fastenal Company
Fastenal Company is a public company operating globally in the manufacturing, manufacturing, manufacturing and professional, scientific and technical services sectors. The company's offerings include hydraulic oil, metal cutting tools, flexible intermediate bulk containers, hydraulic hose & tube fittings,... Subscribe to learn more
Fuchs Group
Fuchs Group is a Global operator providing Hydraulic Oil from their headquarters in US. This operator has a staff size of about employees. According to ProcurementIQ estimates, Fuchs Group holds < 5% of market share... Subscribe to learn more
Marathon Petroleum Corporation
Marathon Petroleum Corporation is an energy company engaged in downstream, midstream, and renewable energy. It organizes its business into three segments: the Refining & Marketing segment, which refines crude oil and other feedstocks at our refineries in the Gulf Coast, Mid-Continent, and West Coast regions;... Subscribe to learn more
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Procurement Management KPIs for the Hydraulic Oil Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Satisfaction (CSAT) and Defect Density. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Handling and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Customer Satisfaction (CSAT) |
|
Positive customer reviews Negative customer reviews |
The useful life and quality of the hydraulic oil will be reflected in the customer satisfaction score. Customer satisfaction can be used to determine whether customer improvements are required. |
| Defect Density |
|
Number of barrels Number of damaged or compromised barrels |
Damaged or compromised barrels can increase delays. Buyers should inspect for damaged or contaminated oils upon delivery arrival to mitigate delays. |
|
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Price
How has your average price for your hydraulic oil products changed during the past three years?
Can I qualify for discounts if I purchase a high volume of hydraulic oil?
Experience and Expertise
When was your company established and how long have you been supplying hydraulic oil to buyers?
Who has been your largest client and how satisfied were they with your operations?
Geographic Coverage
How many branches do you have across the United States? Do you operate globally?
Can you ship hydraulic oil internationally?
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Hydraulic Oil RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their operations.
Buyers should inform suppliers of why they are issuing the RFP.
Statement Of Need
Buyers should inform suppliers of what types of machinery the hydraulic oil will be used on.
Buyers should mention the specifications of the oil they require, including base stock, grade, viscosity index and whether the oil should have any additives.
Project Budget
Buyers should provide a total value for the contract.
Buyers must state their payment preferences.
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Our Reports include:
- Opportunity assessment
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- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
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- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
