Thursday, January 7, 2010

Why is it that motor oil prices haven't gone up at the same rate as gasoline price?

Because motor oil has always been over priced!Why is it that motor oil prices haven't gone up at the same rate as gasoline price?
Because it isnt a huge huge world expence, not everyone is buying lots of motor oil everyday, and the motor oil that is produced is usually from the US anyways, most of the gasoline comes from reserves and the oil for gasoline comes from overseasWhy is it that motor oil prices haven't gone up at the same rate as gasoline price?
Homeslice,





The answer is pretty simple. In the refining process or (cracking) the longer the process the lighter or more refined oils become and are more expensive to produce like gasoline and kerosene. motor oils are more viscous are require less refining and are therefore cheaper to produce.
That's actually quite simple. People are not driving nearly as far, to conserve gas, and are getting their oil change far less often. It's simple supply and demand. The lower the demand, the lower the price.
Because the demand for motor oil isn't as high. You need a lot of gas for every car, but not nearly as much motor oil.
The oil industry has no control over motor oil, only petroleum.
Becuae of the way it is processed. Its easier to make motor oil than gasoline...Its a different type of oil.





Gasoline comes from light sweet crude oil.





Theats the price everyone is talking about by the barrel
And why did propane prices go up? It has nothing to do with gasoline?
I believe it is simply because motor oil is a low grade oil for one... How often do you need to change your oil versus fill your gas tank that might help to answer the question(hint... gas is in higher demand a higher grade of oil as well).

No comments:

Post a Comment