Costco Caps Motor Oil Purchases as Prices Spike

Costco raised the price of its Kirkland Signature full synthetic motor oil to $57.99. The retailer also restricted sales to a maximum of two units per membership every seven days. This two-pack of 5-quart bottles previously sold for approximately $30. The company has applied similar limits to Mobil 1 motor oil, capping purchases at five units per membership. The price for a six-pack of 1-quart bottles stands at $43.99. Representatives for Costco did not immediately respond to requests for comment.

Crude Oil Prices Hit Recent Highs

Brent crude traded above $109 per barrel on Monday morning. This level marks the highest price since May. The benchmark gained 9% in the week prior to Monday. West Texas Intermediate futures traded above $104 per barrel. By Monday's close, Brent settled at $105.68 a barrel. WTI settled at $101.39 a barrel. The market shows signs of cooling after the morning spike.

Supply Constraints Drive Retail Adjustments

Ongoing conflict in the Middle East has tightened the global oil supply. Saudi Arabia closed its East-West oil pipeline following drone attacks. The damage occurred last week. Refiners are prioritizing the production of finished fuels like diesel and gasoline. This shift reduces the availability of base oil. Base oil is the key component in synthetic motor oil. The reduced supply has forced manufacturers to raise prices.

Consumer Impact Across Fuel Markets

The conflict has pushed gasoline and diesel prices higher in the U.S. Gasoline reached a record high for Labor Day. U.S. diesel prices hit a record high above $6 per gallon. These trends align with the broader increase in crude oil costs. The situation reflects a tightening market for oil-based products. Retailers are adjusting inventory and pricing in response to these shifts.