On 1/8/2016 8:32 AM, sms wrote:
On 1/6/2016 4:58 PM, Frank wrote:
On 1/6/2016 4:29 PM, sms wrote:
A quart of name brand 5W30 is still about $2.25, and has not come down
as crude prices have fallen. I realize that crude is just a small part
of the cost of producing motor oil, but apparently it does not respond
to decreases in crude prices at all.

Soon I will have to do some 0W-20 oil changes and that costs about $6
per quart.

Maybe slower to react. Turn-over not as fast. You just don't drop the
price on the stuff on your shelf when new comes in, you'd lose money, I
guess.

Though that's how gas prices do work. Wholesale prices go up and you
raise prices on the stuff you already have in your tanks and make extra
profit, wholesale prices fall and you reduce prices on the stuff you
already have on your tank and make less profit. A friendly person at the
refinery can give you advance notice of major price changes so you can
play this to your advantage, with limited success.

I was surprised how fast heating oil price came down. Will cut this
winter's bill in half.

Seasonal item so inventories were probably not high which allowed this.