Rising crude prices and refinery shifts toward fuel production have triggered motor oil rationing at Costco, with prices for Kirkland Signature oil nearly doubling to $57.99.
Crude oil is approaching $100 per barrel amid a global deficit, Middle East conflict, and depleted inventories.
Brent crude is similarly pressured by the global supply deficit and geopolitical tensions, driving prices higher.
Chevron CEO noted exhausted price cushions amid a global oil deficit, signaling strong upstream profitability.
Costco is rationing motor oil and raised prices due to supply shortages, which may limit sales volume but supports higher margins.
ExxonMobil's Mobil 1 brand is affected by the same base oil shortage, but higher crude prices typically benefit integrated oil majors.
GM's dexos1 certification is mentioned as a cost factor for oil producers, but the company itself is not directly impacted by the oil price move.
Costco has hiked prices and imposed purchase limits on Kirkland Signature and Mobil 1 motor oils as global lubricant shortages intensify. Driven by a widening crude oil deficit and high refinery margins for fuel, the supply squeeze is forcing DIY mechanics to face costs comparable to professional shop services.
Refiners are prioritizing fuel production over lubricants due to high gasoline crack spreads, while global crude oil deficits and geopolitical tensions drive up raw material costs.