Price of motor oil going up?

[guile]

Sure, we know the price of crude has been steadily increasing ... but now I read this blurb posted by an individual at Edmunds Town Hall/Toyota Camry Owners Club that states much higher prices for OTC motor oil in the near future.

quote:

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By the way, if any of you are approaching an oil change, either do it or buy sufficient oil for several oil changes SOON. Katie and Rita did a number on base oil supplies. Several additive suppliers that sell to the major blenders are also on the ropes to fulfill contract obligations and have declared "force majeur" (a contractual "out" for reasons beyond their control). When current stock of finished motor oil in the retail channel is depleted, the price of motor oil is gonna go up by a considerable amount. "Lube Report" got it from industry insiders off the record it may be April, 2006 before shipments resume normal schedules.

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Seems that the motor oil manufactures have done pretty well in weathering the climbing price of crude. I don't know how valid the above quote is, however considering that most every product tied to crude oil has went up in price (The consumer price index, which has been rising steadily through much of the year, jumped 1.2 percent last month, the fastest monthly pace since March 1980, the Labor Department reported. Also, the consumer price index was up 4.7 percent from September 2004)


... I guess it's inevitable that motor oil will also increase.

 

[Robbie Alexander]

yeahhhh
about time

 

[pitzel]

Let's see. The feedstocks for PAO have more than doubled over the past year or two (oil & natural gas). So it is only logical that the prices will go up.

In this new environment of inflation, companies are starting to have increasingly flexible amounts of pricing power, so they will no longer be reducing their profit margins just to maintain the previous price points.

As for motor oils and their pricing, well just look at the obvious. It is cheaper, in many instances quoted in these forums, with 69 cent quarts, to burn virgin motor oil as a fuel, than it is to buy pump diesel. A ridiculous and completely unsustainable situation.

 

[davefr]

Gas is $2.55/gal, Diesel is $3.29/gal, yet Chevron Supreme oil is $.49/qt after rebate. ($1.96/gal).

We need an engine that will run on motor oil

quote:

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Originally posted by pitzel:
Let's see. The feedstocks for PAO have more than doubled over the past year or two (oil & natural gas). So it is only logical that the prices will go up.

In this new environment of inflation, companies are starting to have increasingly flexible amounts of pricing power, so they will no longer be reducing their profit margins just to maintain the previous price points.

As for motor oils and their pricing, well just look at the obvious. It is cheaper, in many instances quoted in these forums, with 69 cent quarts, to burn virgin motor oil as a fuel, than it is to buy pump diesel. A ridiculous and completely unsustainable situation.

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[pitzel]

quote:

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Originally posted by davefr:

We need an engine that will run on motor oil

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Yeah, its called a diesel engine, or an oil furnace.

But as we both know, this sort of arbitrage cannot continue indefinitely.