Any ideas why price/motor oil yet to come down ?

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whitesands

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I know motor oil went up from the oil price increasing to over $140/barrel...Now the price has dropped over $80...Yet the price of motor oil has yet to go down...Is it just a matter of time before the inventory purchased at the higher price sells off before the price comes down ?

What do you guys think ?
 
I'm not expecting it to come down much, if at all.

Less demand for gasoline means less refining, which means less base stocks available. There are even refineries being shut down because they aren't turning a profit.
 
Motor oil did not realy jump up in price when the oil per barrel price went up. Now, the prices are not much higher then they where.

The Motor oils will stay the same price if not go higher to cover the loss when oil barrel did hit $140. If we see low barrel prices for more then 6 months, I think we can expect to see ALOT of price cuts come this spring and summer season.
 
Most of the places that sell oil bought it when it was high cost to them, now it time to pass that on to us, before their stock gets too old then they will drop prices, but it will never be enough to make us hoarders happy.
 
I forgot to mention, PepBoys always has amazing deals on oil and its usually Castrol GTX or Pennzoil Yellow the day after Thanksgiving-Black Friday.
 
Base oil is a different market entirely. Be glad lube prices didn't go us the same % that crude did.
 
I think we had it too good for a long time. The crude oil price from $30 to $140 didn't increase the engine oil price that much. Now that people are used to it they will either not lose as much money as before, or started to make a "reasonable" profit.



If there are too much base stock, they can always sell to another country instead of selling them locally.
 
Originally Posted By: nascarnation
Lots of folks said gas wouldn't go down.
Here in Indy:
$4 to $2.10/gallon in 7 weeks

It can go up just as easy . We are not guaranteed cheap oil prices.
 
There is at least one finished lube stock refinery dead in the water so to speak in Beaumont, Tx. Group 2 stocks are in short supply on the storage side and the refining capacity is now down and since there's less fuel being refined there is less napthenic base, therefore less base stock.

Group 3 is in tight supply and a lot of what we do have is coming in from Korea.

Last report from LNG Report was January for Group 2 stocks to catch up and April for Group 2+, Group 3 and PAO.
 
Went to walmart and saw Castol GTX going for $16/ jug....Rotella T synthetic used to go for $16 and is now $22/ jug...
 
Yeah good question. I concur with the theory that it's the high cost dragging over. Maybe along with some more record profit making tactics from the oil companies stalling a price drop to line their pockets some more.
 
Although I should add, just went to WM and paid $12 for a big jug of Penzoil ain't too bad IMHO
 
Last edited:
Raw materials costs have remained high
the price of oil has recently fluctuated almost $30 per barrel in less than a 30 day time frame. This prevents oil and chemical providers from jumping on the bandwagon to change prices with 30 days notice due to the uncertainty of where things are going. To start moving costs downward will require a period of stability and lower oil prices. Even then, it will take some time for lower costs to work their way through inventories that can result in price decreases
 
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