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Costco rations motor oil amid global supply disruptions
Costco has implemented its first-ever rationing of motor oil due to a global lubricant supply shortage. The retailer is limiting members to one transaction and a maximum of two units of Kirkland Signature full-synthetic oil every seven days.
Prices for the Kirkland Signature 10-quart box have risen from approximately $30 to as much as $58. Additionally, the company has capped purchases of Mobil 1 full-synthetic oil at five units per member.
The shortage is driven by several factors, including high refining margins that lead producers to prioritize gasoline and diesel over lubricant base stocks. Supply is further constrained by disruptions in the Persian Gulf, specifically regarding base oil shipments through the Strait of Hormuz. The United States relies on imports of Group III base oil from regional producers such as Bahrain’s Bapco and the UAE’s ADNOC.
Geopolitical tensions and reported smoke near Saudi Arabia’s East-West Pipeline have also contributed to market instability. Two automakers have reportedly warned of dwindling stocks, raising concerns for both consumers and dealership service departments.
Entities
ADNOC · Bapco · Costco · Kirkland Signature · Strait of Hormuz
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] The price of a 10-quart box of Kirkland Signature full-synthetic motor oil has increased from approximately $30 to between $57.99 and $58. 247ureports.com · drudge.com · www.jalopnik.com
- [○ 1 SOURCE] Costco has capped purchases of Mobil 1 full-synthetic oil at five units per member. 247ureports.com
- [● 2 SOURCES] Refiners are prioritizing gasoline and diesel production over lubricant base stocks due to high fuel refining margins. 247ureports.com · www.jalopnik.com
- [○ 1 SOURCE] Costco is limiting members to one transaction and a maximum of two units of Kirkland Signature full-synthetic oil every seven days. 247ureports.com
- [○ 1 SOURCE] The United States imports a significant portion of Group III base oil from Persian Gulf producers, including Bahrain’s Bapco and the UAE’s ADNOC. 247ureports.com
- [○ 1 SOURCE] Disruptions to Gulf base oil supply through the Strait of Hormuz have compounded the motor oil shortage. 247ureports.com
- [○ 1 SOURCE] Satellite imagery has shown smoke in the vicinity of Saudi Arabia’s East-West Pipeline. www.jalopnik.com