Price of Motor Oil going to drop??

State of Jefferson · Jan 13, 2015

I haven't looked recently, but just wondering, is Motor oil going to come down along with gas prices?? Wouldn't mind stocking up on a few cases of Delo...

Ben

Dean · Jan 13, 2015

It will eventually but the inventory must first move through the pipeline (figuratively, not literally), and the motor oil pipeline is much slower moving than is the gasoline pipeline.

Dean

JayinNY · Jan 13, 2015

I hope so, I need a 55 gallon drum of 15-40 Diesel engine oil, last one I bought 3 years ago or so, was over $400.00 !

Hobo,NC · Jan 13, 2015

(quoted from post at 05:26:15 01/14/15) I haven't looked recently, but just wondering, is Motor oil going to come down along with gas prices?? Wouldn't mind stocking up on a few cases of Delo...

Ben

I have never seen the basic price come down on the wholesale side unless they have a sale... The retail market may decrease a bit but I would not count on it... Look for a sale :wink: ... I hock the farm when Moble1 are Rotella are on sale at a good price from my wholesalers.... Neither have had a good sale for awhile

Pair-a-dice farm · Jan 13, 2015

My guess is that oil will go back up on the market before oil on the shelf comes down. And, of course, it will then go up on the shelf.

37chief · Jan 13, 2015

I should have bought a 55 gal drum when I started. I would probably have been time, and money ahead. Something to think about. Stan

JayinNY · Jan 13, 2015

Yes, I figured it out, it was alot less per quart or gallon buying the drum, but it's alot of money out of pocket up front.

Gambles · Jan 13, 2015

Does the price of a loaf of bread drop when the commodity price of what drops? Of course not.
I guess what I'm saying is that the price of crude does very little to the price of refined oil that you buy in a container. The biggest price is the cost of refinery, the price of the equipment used in the refinery, labor that is needed to refine the oil and also the price to transport it from the refinery to your doorstep. The price will drop (a little) when some company wants to increase market share and they lower their profits to try to meet that goal.

heavyhaulertoo · Jan 13, 2015

I bought a barrel in the fall only 800.00

Dean · Jan 13, 2015

I doubt it, P-A-D.

Fracking has changed the ball game.

Dean
What The Saudis Say

D beatty · Jan 13, 2015

Its hard to tell if motor oil prices come down but if Washington gets what they want gas to go up any where from $.10-$.20 a gallon. Nancy Pelosi (D),Dick Durbin (D) and Bob Corker (R) are pushing for a increase in gas tax.

State of Jefferson · Jan 13, 2015

So then why do gasoline and Diesel drop when crude drops??

Ben

MarkB_MI · Jan 14, 2015

One should not confuse what the Saudis say with what the Saudis do.

MarkB_MI · Jan 14, 2015

Because crude oil is a significant cost component of gasoline and diesel. Remember, even at $4 a gallon, gasoline is one of the cheapest substances a consumer can buy. Motor oil is more expensive than gasoline primarily because of the way it is packaged and distributed.

Dean · Jan 14, 2015

Fracking is the reason. The referenced Saudi investor has simply accepted the new reality.

Stay tuned.

Dean

Dean · Jan 14, 2015

Bingo.

The federales will not miss this "opportunity" to incresae fuel taxes.

I've read of proposals to increase federal gasoline taxes up to $1.00/gallon.

Of course, once gasoline taxes are increased, the federales will not fail to do the same with diesel fuel taxes.

Dean

MH · Jan 14, 2015

That is about what I've been paying, would like to find some of that $400.00/barrel oil.

D beatty · Jan 14, 2015

Dean did you ever notice that any new tax or tax add to a tax is added it is never lowered or taken off.

ss55 · Jan 14, 2015

Gambles comparison of a quart of motor oil to a loaf of bread is good. How much petroleum is used to make a quart of motor oil? At $100 per 42 gallon barrel of oil, a quart of crude oil is about $0.60. At $50 per barrel it's $0.30.

Bill in IL · Jan 14, 2015

Good old Dick working hard for us in IL.

I think its going to take an extended period like a year to seen any relief in the motor oil market.

kyhayman · Jan 14, 2015

I used to buy a drum of engine oil and 3 drums of hydraulic oil every year. Last couple of years I've been able to catch sales at Napa and or TSC for oil and its come out as cheap or cheaper. Castrol 15w 40 was 9.99 at Napa in 2013, and at TSC this year. So. I got 55 one gallon bottles. Not as cheap as the 465 that I paid for Conoco in 2012 but cheaper than the 585 they wanted for Conoco in 2013. Less waste and less mess too.

Same with hydraulic fluid. At 29.99 on sale its under 350 per drum which is what I saw it for at Rural King and much less than the 399 it was at the petroleum dealer. So, I had TSC rain check me 2 pallets.

Price of Motor Oil going to drop??

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