Most folks do extended OCI's to save money and because they don't want to waste oil. If the idea of extended OCI's catches on, how longer before the oil manufacturers decide to raise prices because they aren't selling as much oil in order to maximize profits? I can see them now "Our old oil cost $2/quart and was good for 3k miles. Now that it's proven good for 7k miles, we'll chare $4/quart.". I can see it happening.
Extended OCI's and oil prices?
- Thread starter otis24
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Supply and demand.
surfstar is correct. There is no collusion possible in a free market. If Shell drops their price a few cents to be more attractive in price, and people follow that product, Exxon will follow, if enough market share is lost. PP and Mobil 1 are examples. PP is on sale enough that I wouldn't be surprised if PP is taking market share from Exxon. I wouldn't worry about it as long as there are several players in the market...all looking to sell their product.
Real price of motor oil in Canada is ~50% higher than in the USA, and there are no import taxes that I know of. Free market only works to lower prices if it is a *competitive* free market.
About the only time our oil prices are even close to the US prices is when Canadian Tire, Partsource or Walmart have a sale, or you get your oil at Costco by the case.
Quite true!
The cost of oil, particularly dino, but even synthetic, has virtually no impact on my OCI. Oil and filters are cheap; engines aren't.
Exactly!
It is not a question of whether or not prices affect our OCI's. I am wondering if extended OCI's could affect oil prices.
heck, instead of waiting for oil sales, i can just save a few bucks and buy oil when i'm traveling in MA, instead of buying in NY.
I get the impression oil basestocks are rather a "leftover" of distilling a barrel of crude. They already tune distillation to maximize gas and diesel output, maybe a little jet fuel. The hippie in me doesn't see a frequent OCI as a "waste". There are gas-to-liquid processes that use natural gas which get more complicated on a price/resource comparison but someone will still try to "save" distillation leftovers until no longer feasible. There's a chart somewhere "What's in a barrell of crude" and also read up on basestock groups and where they come from.
My waste oil gets burned by the town's garage in a waste oil burner and displaces a "free" gallon of #2 fuel oil that could be sold elsewhere. Sure it pollutes the air a little but if I changed half as often, my waste oil would be twice as concentrated with nasties.
Additives and of course manufacturing energy and transportation will add to the price somewhat but supply and demand won't raise finished motor oil prices to the degree you hypothesise-- at least not in the bargain brand oils.
My waste oil gets burned by the town's garage in a waste oil burner and displaces a "free" gallon of #2 fuel oil that could be sold elsewhere. Sure it pollutes the air a little but if I changed half as often, my waste oil would be twice as concentrated with nasties.
Additives and of course manufacturing energy and transportation will add to the price somewhat but supply and demand won't raise finished motor oil prices to the degree you hypothesise-- at least not in the bargain brand oils.
If the quality of the oil is bad, there will be more contaminants in the oil, since the piston rings will not seal so well against the cylinder wall as a quality oil. The contaminants coming from the air into the oil, is almost non-excististing, since 97-99% of the dirt is filtered by the airfilter. In most cases the contaminants in the oil, are created by the oil itself. Sometimes, quality can be cheap.
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