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Costco Raises Price of Kirkland Motor Oil Amid Rising Oil Prices and Supply Disruptions
Developing
In Short: Costco has increased the price of its Kirkland Signature full synthetic motor oil and is limiting purchases due to rising oil prices and supply disruptions caused by the conflict in the Middle East.
Costco has raised the price of its Kirkland Signature full synthetic motor oil and is now limiting how much customers can purchase weekly amid rising oil prices. A 10-quart case of the oil is now $58, up from $30 to $35 in recent years. Additionally, the retailer is limiting Mobil 1 full-synthetic motor oil’s 1-quart six-pack to five per membership.
The price of a barrel of Brent Crude exceeded $109 on Monday morning, reflecting the ongoing conflict in the Middle East that has disrupted global oil shipments. This has led to a national average price of regular gasoline reaching nearly $4.32 per gallon, up from $4.08 a month ago and $3.18 a year ago, according to AAA.
The reasons for the price jump and limited stock stem from the ongoing war between the United States and Iran, which has dramatically slowed the movement of oil through the Strait of Hormuz. Synthetic motor oil like the Kirkland blend and Mobil 1 rely on Group III base oils, and the United States typically relies on Middle Eastern sources for about 40% of those oils.
Since the conflict, the price of a barrel of Brent Crude has jumped to $109 as of Monday morning, and stock has been severely limited as a result of the continued conflict in the region. Retailers like Costco are responding by increasing prices and limiting what customers can buy.
What's confirmed
- The price of a barrel of Brent Crude exceeded $109 on Monday morning as the conflict in the Middle East keeps disrupting global oil shipments.
What's still developing
- In addition, Costco is limiting members to one case per transaction and no more than two cases per week.
- “The longer the shutdown, the higher the price. Judging from the online pictures, it will take months to repair,” he said.
- The price jumped in recent months, from a little over $30 for a ten-quart case (enough for an oil change on a standard V6 or V8 engine) to $57.99 for the same two five-quart bottles.
Sources
- The Daily Wirelink