If gas prices are dictated by crude oil barrel prices, why doesn't motor oil price fluctuate as well?

The answer is in three parts.





1. What's in the lube can is more than oil.





Today's lubricants are significantly synthetic, even the ones made from 100% Pennsylvania oil. Detergents, antioxidants, viscosity modifiers and other chemicals make up 5% to 50% or more of the can and are much more expensive than any oil bases still in there.





2. Price changes less when inventory is large.





The inventory life of lubricating oils may be several months to a year, while fuels are consumed in a fraction of that time.





3. Speculation and trading by the 'haves' sets oil prices.





Fuel prices are greatly influenced by commodity trading. The 'haves' just don't deal in lubricating oil futures, so normal market forces set lubricant values. In contrast, the rich and powerful and their nervous traders can change oil prices in hours.If gas prices are dictated by crude oil barrel prices, why doesn't motor oil price fluctuate as well?
Gasoline is a much more refinery-intensive by-product of crude oil whereas motor oil requires far less refinement to be usable as a lubricant. A substantial cost factor of gasoline can be directly related to the refining capacity which, at the current time in the U.S., is virtually maxed out.





Simply put, oil is what is pulled straight from the reservoirs and requires far less processing to become motor oil; and gasoline must be produced by extensive and expensive refining processes at much larger quantities. In addition, motor oil is a recyclable commodity whereas once gasoline is burned and gone forever.





You might also consider that far less motor oil is bought and consumed than gasoline. If you were selling both of these as a commodities broker, which would you choose to maximize your profits? And if you knew there was a finite supply, wouldn't you want the maximum profits as quickly as possible? (i.e. Exxon Mobil and other Big Oil company profits have, in just in the past few fiscal quarters, have exceeded the GDP of multiple countries in the industrialized world.)





Post-Hurricane Katrina (when oil prices were around $60 or so per barrel) gas prices shot up to $3.00 per gallon. After the chaos settled down and oil barrel prices dropped back close to pre-Katrina prices, GASOLINE prices did not.





One word...Gouging.If gas prices are dictated by crude oil barrel prices, why doesn't motor oil price fluctuate as well?
Gas prices are dictated partially by OPEC, partially by Oil Companies and Oil Speculators (futures trading), and to put it in a nutshell, they're dictated by GREED!!
Because people don't use it as much as gas (supply and demand) If people stopped using gas for a week the prices would drop

scars