From Chevron's website
What do Group I, II, and III mean, and what's so great about Group II and Group III? These groups, along with Group IV and Group V are broad categories of base stocks developed by the American Petroleum Institute (API) for the purpose of creating guidelines for interchanging base stocks when blending licensed engine oils. Typically, solvent-refined base oils fall into Group I, while hydroprocessed base stocks fall into Group II. Unconventional Base Oils (UCBOs) are more severely hydroprocessed to make Very-High VI stocks and are normally categorized as Group III. Group IV are polyalphaolefins, PAO's, and form the basis of many traditional synthetic lubricants. Group V are oils that do not fall into any of the first four groups. This chart, from API publication 1509 provides a simple way of remembering the properties of each of the Groups:
Group Sulfur, Wt% Saturates V.I.
I >0.03 and/or <90 80-119
II ≤0.03 and ≥90 80-119
III ≤0.03 and ≥90 ≥120
IV All Polyalphaolefins (PAOs)
V All Stock Not Included in Groups I-IV
(Pale Oils and Non-PAO Synthetics)
Group II+, though not an official API designation is a term used increasingly to describe Group II stocks of higher VI (112-119) and lower volatility than comparable group II stocks.
Group I oils contain high levels of sulfur and aromatics, which are compounds that can diminish performance. Group II & III oils have almost none of these impurities, which result in enhanced oxidation performance for fully-formulated lubricants. Thanks to Chevron's proprietary ISODEWAXING technology, Chevron's Group II and II+ base oils also have very low wax content, which delivers better low-temperature performance compared to many other base oils. Due to their high level of purity, Chevron Group II & II+ base oils provide additional benefits in crankcase applications. For example, in heavy-duty engines, motor oils made with Chevron base oils have demonstrated a soot dispersancy markedly higher than those made with Group I base oils.