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This term is used to encompass lubricating base oil derived from crude oil.  The American Petroleum Institute (API) designates several types of lubricant base oil identified  as:

Group I - Saturates <90% and/or sulphur >0.03%, and Society of Automotive Engineers (SAE) viscosity index (VI) = >80 to <120

- Manufactured by solvent extraction, solvent or catalytic dewaxing, and hydro-finishing processes.  Common Group I base oil are 150SN (solvent neutral), 500SN, and 150BS (brightstok)

Group II – Saturates >90% and sulfur <0.03%, and SAE viscosity index >80 to <120

- Manufactured by hydrocracking and solvent or catalytic dewaxing processes.  Group II base oil has superior anti-oxidation properties since virtually all hydrocarbon molecules are saturated.  It has water-white color.

Group III – Saturates > 90%, sulfur <0.03%, and SAE viscosity index >120

- Manufactured by special processes such as isohydromerization.  Can be manufactured from base oil or slax wax from dewaxing process.

Group IV – Polyalphaolefins (PAO)

Group V – All others not included above

Such as naphthenics, PAG, esters, and etc.

In North America, Groups III, IV and V are now described as synthetic lubricants, with group III frequently described as synthesised hydrocarbons, or SHCs.  In Europe, only Groups IV and V may be classed as synthetics.

The lubricant industry commonly extends this group terminology to include:

Group I+ with a Viscosity Index of 103 - 108

Group II+ with a Viscosity Index of 113 - 119

Group III+ with a Viscosity Index of >= 140

Can also be classified into three categories depending on the prevailing compositions: