Costco is known for letting members bulk buy just about anything. Motor oil just became the exception.
The retailer has capped purchases of its Kirkland Signature full synthetic motor oil to two units every seven days, according to CNBC. The price for a two-pack of 5-quart bottles has also jumped from around $30 to $57.99. Mobil 1 is facing similar limits, capped at five units per membership at $43.99 for a 6-pack.
The squeeze traces back to oil markets. Brent crude, the leading global benchmark for pricing internationally traded crude oil, climbed above $109 a barrel this week, its highest level since May. As crude prices climb, refiners have been prioritizing gasoline and diesel production over base oil, the key ingredient in synthetic motor oil, further squeezing supply.
The ripple effects are showing up everywhere. Gasoline hit a Labor Day record this year, and U.S. diesel prices have climbed above $6 a gallon for the first time. Even a warehouse club known for bulk deals and bargain prices isn’t immune.
Costco is known for letting members bulk buy just about anything. Motor oil just became the exception.
The retailer has capped purchases of its Kirkland Signature full synthetic motor oil to two units every seven days, according to CNBC. The price for a two-pack of 5-quart bottles has also jumped from around $30 to $57.99. Mobil 1 is facing similar limits, capped at five units per membership at $43.99 for a 6-pack.
The squeeze traces back to oil markets. Brent crude, the leading global benchmark for pricing internationally traded crude oil, climbed above $109 a barrel this week, its highest level since May. As crude prices climb, refiners have been prioritizing gasoline and diesel production over base oil, the key ingredient in synthetic motor oil, further squeezing supply.
The ripple effects are showing up everywhere. Gasoline hit a Labor Day record this year, and U.S. diesel prices have climbed above $6 a gallon for the first time. Even a warehouse club known for bulk deals and bargain prices isn’t immune.