Synthetic Motor Oil Shortage Hits Retailers Amid Ongoing Conflict

A new shortage of synthetic motor oil has retailers imposing purchase limits and price hikes. Costco, for example, raised the prices of its store brand synthetic oil and capped maximum purchases at two boxes per week.

The shortage began in May when refineries prioritized producing gasoline over other products, including synthetic motor oil. Most of this type of oil is derived from crude oil refinement, with the US importing over 40% of its supply from the Middle East, where oil flows have been restricted due to the conflict in Iran.

The cost of a barrel of oil has risen above $109, contributing to record-high diesel fuel prices. President Donald Trump acknowledged that gas prices were 'a little higher' due to the ongoing war with Iran but argued that preventing Iran from obtaining nuclear weapons capability was worth it, even if it meant paying more at the pump.