Costco Restricts Motor Oil Purchases Amid Rising Crude Prices
Crude oil prices reached four-month highs on September 15, with Brent crude closing at $108.75 per barrel and U.S. light sweet crude settling at $105.83 a barrel. The surge is attributed to escalating conflicts in the Middle East disrupting supply chains, particularly affecting Saudi Arabia's oil exports due to damaged infrastructure like its East-West Pipeline. As a result, diesel prices hit record levels nationwide, with California seeing prices above $8 per gallon. Costco (COST) has responded by limiting motor oil purchases and raising the price of its Kirkland Signature synthetic product from around $30 for a 5-quart case to $57.99 due to supply chain pressures. The situation is prompting discussions about potential U.S. diesel export bans, though no concrete measures have been announced yet. The rising oil prices are squeezing consumers and businesses alike, with gasoline prices up over 51% year-to-date. Analysts warn of continued high prices until November or December as supply disruptions persist.
Tickers: $COST
Topics: crude oil market gasoline prices Middle East conflict motor oil purchase limits oil prices