The American Petroleum Institute (API) has categorized base oils into five categories (API 1509, Appendix E). The first three groups are refined from petroleum crude oil.

Group I base oils are classified as less than 90 percent saturates, greater than 0.03 percent sulfur and with a viscosity-index range of 80 to 120. The temperature range for these oils is from 32 to 150 degrees F. Group I base oils are solvent-refined, which is a simpler refining process

Group II base oils are defined as being more than 90 percent saturates, less than 0.03 percent sulfur and with a viscosity index of 80 to 120. They are often manufactured by hydrocracking, which is a more complex process than what is used for Group I base oils. Since all the hydrocarbon molecules of these oils are saturated,

Group II base oils have better antioxidation properties. They also have a clearer color and cost more in comparison to Group I base oils. Still, Group II base oils are becoming very common on the market today and are priced very close to Group I oils.

Group III base oils are greater than 90 percent saturates, less than 0.03 percent sulfur and have a viscosity index above 120. These oils are refined even more than Group II base oils and generally are severely hydrocracked (higher pressure and heat). This longer process is designed to achieve a purer base oil.

Although made from crude oil, Group III base oils are sometimes described as synthesized hydrocarbons. Like Group II base oils, these oils are also becoming more prevalent.