Costco has introduced purchasing limits and increased prices on motor oil amid tightening supply conditions. Members are now restricted to buying a maximum of two units per week of the Kirkland Signature full synthetic motor oil two-pack, priced at $57.99, a significant jump from the usual price near $30. Similarly, Mobil 1 motor oil sales are limited to five six-packs per membership, priced at $43.99 each, reflecting the retailer’s move to manage inventory in response to market pressures.

The increase in motor oil prices coincides with a surge in crude oil costs driven by geopolitical tensions in the Middle East. Brent crude reached over $109 per barrel earlier in the week—the highest since May—before settling around $105. The spike followed Saudi Arabia’s decision to shut down its East-West oil pipeline after drone attacks damaged infrastructure. These disruptions are causing supply chains for refined products, including motor oil, to tighten considerably.

Refiners have been prioritizing the production of fuels such as gasoline and diesel amid constrained supplies, which limits the availability of base oils used for modern synthetic motor oils. This shift toward fuel manufacturing has heightened motor oil scarcity, contributing to rising retail prices and the need for rationing at wholesale sellers like Costco. The effects are seen not only in motor oil but also in overall fuel costs, with U.S. gasoline and diesel prices hitting record highs recently.

Costco’s measures underscore how the ongoing conflict and oil supply disruptions are impacting everyday consumer goods reliant on petroleum. By enforcing quantity limits and raising prices on motor oil, the company aims to balance inventory availability with increased production costs. These steps reflect broader trends in energy markets, where geopolitical events and supply constraints are influencing pricing and product accessibility.