Global shortage has led to motor oil rationing at Costco
summary
Costco is experiencing a significant increase in motor oil prices and has implemented purchase limits due to a global lubricant supply shortage. This shift is driven by the more complex and expensive production requirements for modern engine oils and pressures within the petroleum refining system. These changes make DIY oil changes more expensive and less attractive compared to professional services. The rationing of a common household item like motor oil suggests a broader instability in theulubricant market.
key points
- Modern engine oil is no longer a simple product; it requires rigorous testing and certifications to meet strict industry standards like GM's dexos1 Gen 3 to protect turbochargers and direct injection engines.
- Lubricant base-stock supply is limited because it is the same refining system used for gasoline and diesel, and refiners often prioritize transportation fuels when they are more profitable.
- The combined effect of price increases and purchase limits on both Kirkland Signature and Mobil 1 brands at Costco is narrowing the price gap between DIY maintenance and independent repair shops.
who should read it
Car owners who perform their own oil changes and Costco members looking to save on maintenance costs.
discussion skeptical
consensus
Commenters generally agree that motor oil shortages are a real threat, leading some to hoard supplies. There is a significant debate regarding the US Strategic Petroleum Reserve (SPR), with several users arguing that the president has the authority to empty it entirely regardless of legal floors. Sentiment is cautious and pessimistic, reflecting concerns over geopolitical instability and political leadership.
top insight
A detailed correction of common misconceptions about the Strategic Petroleum Reserve explains that the caverns are not at risk of collapse from low oil levels because oil floats on water. Instead, the structural integrity is compromised by the cumulative effect of water erosion over time, rather than the specific volume of oil remaining.
Generated by an LLM from the article and thread. Check the sources before relying on it.