FT: American retailers limit sales of motor oil due to shortage
The global shortage of motor oil has led to the fact that the leading retail chains in the United States not only sharply raised selling prices, but also began to restrict sales to consumers. According to the Financial Times, now the growth in the cost of base oils used to produce synthetic motor oils is significantly ahead of the dynamics of prices for crude oil, gasoline and diesel fuel.
The global shortage of motor oil has led to the fact that the leading retail chains in the United States not only sharply raised selling prices, but also began to restrict sales to consumers. According to the Financial Times, now the growth in the cost of base oils used to produce synthetic motor oils is significantly ahead of the dynamics of prices for crude oil, gasoline and diesel fuel. According to Argus Media, the price of base oils in the U.S. has almost quadrupled since February, reaching a record high of $12.45 per gallon on September 18.
On the website of the retail chain Costco stated that the price for a package of one of the types of synthetic oil with a volume of 10 quarts (9.5 liters) is not only increased to $57.99, but also limited in sale – in one hand you can buy only one package. Last year, the same product at Costco cost about $30.
On the website of the network Walmart also appeared information about limited stocks of some brands of motor oils. “We work closely with suppliers to ensure that products are available at low prices that our customers expect,” the company said.
The disruptions to base oil supplies first arose after an Iranian strike in March damaged Shell’s large plant in Qatar, which produces synthetic base oils. The U.S.-Iran military standoff in the Strait of Hormuz has also hampered tanker shipments of crude oil from the Persian Gulf to South Korea, one of the world’s largest base oil producers.
Eugene Hvostik
