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2 clusters · 15 sources · 4 days · First seen · Last updated

Global motor oil supply shortage and price increases

Overview

Costco has implemented purchase limits and significant price increases for its Kirkland Signature full-synthetic motor oil due to a global supply shortage. The price for a 10-quart package has risen from approximately $30 to roughly $58, with members restricted to a maximum of two units every seven days.

The shortage is attributed to a scarcity of Group III base oils, which are essential components for synthetic lubricants. This scarcity is driven by several factors, including production disruptions in the Middle East—specifically affecting facilities in Qatar, Bahrain, and the United Arab Emirates—and tensions near the Strait of Hormuz. Additionally, refineries are prioritizing the production of high-margin transport fuels like gasoline, diesel, and jet fuel over lubricant feedstocks.

Industry data indicates that overall motor oil prices increased by an estimated 24.2% between February and August, contributing to broader inflationary pressures.

Entities

Kirkland Signature · Costco · Bapco · Shell · API Group

Timeline

  1. 14 days ago

    [BUSINESS] 2 sources
    Costco raises motor oil prices and limits sales amid supply shortages

    Costco has nearly doubled the price of its Kirkland Signature synthetic motor oil and implemented weekly purchase limits due to global supply shortages of Group III base oils.

  2. 17 days ago

    [BUSINESS] 13 sources
    Costco rations motor oil and raises prices amid global supply squeeze

    Costco is rationing Kirkland Signature motor oil and raising prices to nearly $58 per 10-quart pack due to a global supply shortage caused by Middle East conflicts and high refinery demand for fuels.

Sources

247ureports.com · conservativedailynews.com · dailycaller.com · drudge.com · europesays.com · freerepublic.com · informationgovernance.com · investmentwatchblog.com · jalopnik.com · jubakpicks.com · nemosnewsnetwork.com · newsday.com · thenationalpulse.com · time.news · wdio.com