I don't think engine oil is considered a commodity. That's also why a pound of American "Swiss" cheese costs now $10 and why that price won't drop considerably or at all. I still see DVD players for under 50 bucks, so the basic needs are mostly covered.
Now that prices have been raised to fully cover the (now non-existent) added costs of fuel, don't expect them to go down much at all. Companies are very reluctant to actually raise prices, but once prices ARE raised they don't go down.
I doubt you'd see any decrease in prices on motor oil. Their costs of base oils have gone up (remember that the oil you are seeing on the shelf was made months ago. WHEN the OIL cost a lot more) and the costs of everything else (production costs) have gone way up and will not be going down.
Add the extra costs of taxes coming next year on them and everything will be much more.
I'm NOT planning on ANYTHING going down in price. Gas will be $5 next driving season and then go back down to a little over $4 out of season.
I'm glad I stocked up on oil when it was on sale. My wife says "do you REALLY need anymore oil?" Well, when it's 2-3x the price it was a few years ago, I'm glad I have 175qts on hand!
Originally Posted By: ToyotaNSaturn
I'm glad I stocked up on oil when it was on sale. My wife says "do you REALLY need anymore oil?" Well, when it's 2-3x the price it was a few years ago, I'm glad I have 175qts on hand!
1) When oil price dropped to the bottom like it used to, below $30
2) When US dollar rise up so much that everything else drop in value, including oil, so it is also #1
So, why is Motor Oil still at a record high and when will it go down...?
Not any time soon... The marketers managed to raise the prices without much outcry. They will leave them what they are until the demand goes down or one of them initiates a price war.
If demand for fuel is down in the USA (per the news accounts), shouldn't demand for motor oil be down, too? Reduced demand, lower prices, you know the drill. Doesn't seem to be happening with motor oil.
I used to hoard oil long before BITOG. I imagine many others today hoard as well. If the prices are artificially high, we can hold off until their prices come down. Supply and demand will prevail.