If the price of oil is falling why isn't motor oil

Status
Not open for further replies.
Joined
Dec 12, 2006
Messages
475
Location
snow and sun
What is going on? The price of oil is falling and so is gas....so why aren't we seeing falling prices of motor oil? Both gas and motor oil have to be refined before being sold. I don't get it.
 
Because it's already been refined and is on the shelves. The price reflects new oil,not what's already there.
The reason fuel drops in price is because we would go nuts in the streets if it didn't. However the fuel companies take the loss when the price of fuel drops because what's in the tanks isn't the cheaper stuff yet.

It's gotta trickle down and that takes time.
 
I'm running low of FAR motor oil.....so..with low oil prices..
BRING BACK FREE AFTER REBATE OIL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

banana2.gif


25.gif


19.gif
 
Last edited:
Probably because the fraction that's suitable for use as basestock is very small and the crude oil cost of a fully fomulated motor oil is also very small.
 
Originally Posted By: Texan4Life
I wonder how this affects Shell's GTL plans?


I doubt its helping.
 
Originally Posted By: demarpaint
Originally Posted By: Texan4Life
I wonder how this affects Shell's GTL plans?


I doubt its helping.


lol
 
True, they make less money in crude oil and gasoline so they keep engine oil price high to make up for that.

If crude oil price is staying low for some time and 1 company decides to capture some market share by lowering their price, other companies will follow suit to retain their market shares.
 
Originally Posted By: 901Memphis
This just means they're making more money.


BINGO! I think its a "because they can" thing, just MHOP
 
It could be informal collusion.

The motor oil that has gone up in price comes from the same companies whose profits are down because the oil price is down.

Supertech oil hasn't gone up in price. And I saw that some Valvoline conventional was on special at Walmart.

I think another reason is the season. In summer, reducing the price of oil may increases sales since it is possible to change oil in that weather. The temporary price reduction may persuade people to buy and change oil when they might not have. In winter, nobody is going to buy oil if they don't need to. So why drop the price? Those who must change oil in winter, either at home or a garage, will buy at full price.
 
Originally Posted By: Cutehumor
I'm running low of FAR motor oil.....so..with low oil prices..
BRING BACK FREE AFTER REBATE OIL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

banana2.gif


25.gif


19.gif



^This man has it together people.

Originally Posted By: aa1986
It could be informal collusion.

The motor oil that has gone up in price comes from the same companies whose profits are down because the oil price is down.

Supertech oil hasn't gone up in price. And I saw that some Valvoline conventional was on special at Walmart.

I think another reason is the season. In summer, reducing the price of oil may increases sales since it is possible to change oil in that weather. The temporary price reduction may persuade people to buy and change oil when they might not have. In winter, nobody is going to buy oil if they don't need to. So why drop the price? Those who must change oil in winter, either at home or a garage, will buy at full price.


Logical. BUT why not just buy FAR oil and start a stash like a true BITOG'er?
grin2.gif
 
Originally Posted By: Clevy
Because it's already been refined and is on the shelves. The price reflects new oil,not what's already there.
The reason fuel drops in price is because we would go nuts in the streets if it didn't. However the fuel companies take the loss when the price of fuel drops because what's in the tanks isn't the cheaper stuff yet.

It's gotta trickle down and that takes time.

Gas stations always raise their prices on the product already bought, paid for and have in their storage tanks.
 
Status
Not open for further replies.
Back
Top