Costco Raises Motor Oil Prices to 57.99 Dollars

Costco raised the price of a two-pack of Kirkland Signature full synthetic motor oil to 57.99 dollars. This figure is nearly double the typical price of 30 dollars. The retailer also capped purchases at one transaction per membership. Members can buy a maximum of two units every seven days. These restrictions apply to the company's private label product.

Limits also cover Mobil 1 motor oil on the Costco website. The price for a six-pack of one-quart bottles is 43.99 dollars. Customers are restricted to five units per membership. Costco did not respond to requests for comment regarding the pricing changes. The company is known for offering bulk goods at lower costs.

Crude benchmarks hit multi-month highs

Brent crude traded above 109 dollars per barrel on Monday morning. This level was not seen since May. The benchmark gained 9 percent during the previous week. West Texas Intermediate futures traded above 104 dollars per barrel. Both benchmarks settled lower by the end of the day. Brent closed at 105.68 dollars and WTI at 101.39 dollars.

Geopolitical conflict disrupts oil supply

Conflict in the Middle East has intensified and widened in scope. Saudi Arabia closed its East-West oil pipeline after drone attacks. The drones were launched from Iraq and damaged parts of the pipeline. This action reduces the volume of crude oil available globally. The supply tightening affects the entire energy sector.

Refinners prioritize fuel over base oil

Refiners are generating stronger profits from producing diesel and gasoline. They are shifting production away from base oil. Base oil is a key component in modern synthetic motor oil. This shift reduces the supply of ingredients needed for motor oil. Gasoline prices in the US hit a record during Labor Day. US diesel prices exceeded 6 dollars per gallon.