Price of oil this year?

[Jimmy9190]

OK so I'm about to bite the bullet and take advantage of the $14.00 price on the 5 quart jugs of Maxlife at Walmart. As much as I dislike WM and their practices, I can get Maxlife there for less than half price over Napa and the other parts stores right now. It's an offer I can't refuse. The reason I'm buying at WM and stashing up at least 4 or 5 jugs is I really think the price of motor oil will not come down any time this year. I may even stash more jugs than that, depending on how long the sale holds out. Motor oil went up last year and never has come down in price since. I used to buy Maxlife for around $3.00 to $3.50 a quart, now it's almost twice that much. Anyone have any idea/speculation/inside info on what the price of oil will do this Spring or when we get into the "summer driving season"? I will say I wished I had been stashing oil all along here in the last year or so. Even the price of Napa brand HM oil is approaching $4.00 per quart. I think it would be smart now to build my own Strategic Oil and Filter Reserve. I'm very interested in what we all think about this.

 

[GROUCHO MARX]

If I knew, I would be posting from a Polynesian Island.

 

[Mr Nice]

I think the 5 quart jugs will fall another $1 , maybe $2 and the quarts will drop 50 cents (at most). I recently got more free oil and have to retake pictures of my 'Strategic Oil Reserve' , I have approx 170 quarts of oil. If you like HM oil, HomeDepot was closing out Pennzoil HM for 79 cents last year, too bad you didn't stock up back then.

 

[Mark888]

Obviously the price of most motor oil is largely dependent on the price of crude oil, although there are other costs involved. Crude oil has already come down significantly, but we still have not seen motor oil back to the old prices. What this means is that the oil companies in the Marketing and Refining business are making a killing on refined products (gas and motor oil). We probably will see some reduction in prices, but not as much as they should be based on previous crude oil prices. The oil companies figure that consumers have permanently "adapted" to the new prices and that they don't have to lower them as much as they could.

 

[oilboy123]

Quick to raise prices, slow to lower them = Much Profits.......

 

[oilyriser]

The oil companies are adapting their prices to the widespread use of OLM systems by the car companies.

 

[daves87rs]

They will drop a bit...but only because of walmart. I expect them to start heading back up later this year.

 

[genynnc]

The knowledge of oil on this board is amazing. Equally amazing is the lack of knowledge regarding economics and markets- as demonstrated in this thread.

 

[Mark888]

 Originally Posted By: genynnc

The knowledge of oil on this board is amazing. Equally amazing is the lack of knowledge regarding economics and markets- as demonstrated in this thread.

How markets work in theory is not always the same as how they work in practice. It is a rather well know fact in the oil business that refiners make much better margins and total profits when crude prices are low, than when they high, even though their gross revenues may be the opposite. It may be true that over the long haul, competition would drive prices of refined products down if crude prices remain stable. But during the short and intermediate term, prices of motor oil have been very slow to decline in line with the decline in crude prices.

 

[Jimmy9190]

Soon as I can get there, I'll be stocking up on Maxlife in the 5 quart jugs. It's not the most pleasant experience to shop at WM. And it will be a pain to use the 5 quart jug since my engine only needs 4 quarts for an oil change with a new filter. I have a rinsed out and dried out windshield washer fluid bottle that I plan to measure 4 quarts out of the first jug I use, then I can make reference marks at the 4 quart level and that should take any future guesswork out of it. The jugs have the gauge on the side, but measuring it out in another jug first will ensure I get the correct amount. Then I'll just seal the open Maxlife jug as tightly as I can until my next oil change. I don't expect much change for the better in motor oil prices this year either. For that matter, I think gas prices will probably be at least another 50 cents by summer, if not more. I just hope we don't see $4.00+ gas ever again. Hopefully stashing Maxlife and ProSelect filters now will save me some money later. I drive a lot and change my oil about every 60 days. Thanks for the info here.

 

[Mark888]

 Originally Posted By: Jimmy9190

I just hope we don't see $4.00+ gas ever again.

"Ever" is a long time, unless you plan on being one of the "departed" sooner than you hoped.

 

[labman]

Short term as long crude stays down, I think consumers will force the price of motor oil down. Long term? Unless we make some huge changes in out way of life, once the economy picks up gas will shoot right past $4. Don't be buying a guzzler now.

 

[Anies]

One would think that keeping gas and oil prices low would "spark" and maintain the economy. Lower prices = more traveling, more traveling = more purchases, let the people who drive this economy make it thrive once again. I forget who said it, but on the news there was an analyst who stated that taxing the upper class would hurt the economy more so than taxing the middle class. The middle class outnumbers the upperclass. meaning that person in the upper class buys a 90k porsche doesn't help the economy, but the 4 or 5 people who buy a 20k or so car do, more volume is being moved. More volume equates to more jobs/a holding of jobs. People have been skewing the basics of economics for greed!

 

[oilboy123]

 Originally Posted By: genynnc

The knowledge of oil on this board is amazing. Equally amazing is the lack of knowledge regarding economics and markets- as demonstrated in this thread.

Equally amazing is your superior and condescending attitude. Like Mark888 says it is not cut and dried anyway........