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4w ago

Motor Oil Prices Jump As Low-Viscosity Supplies Tighten

Officials blame Strait of Hormuz closures alongside a Qatar plant outage.

Traffic moves along Highway 101 on March 26, 2026 in Los Angeles, California.
Ships remain anchored on May 16, 2026, in the Strait of Hormuz near Larak Island, Iran. Negotiations between the US. and Iran over opening this critical waterway have largely stalled as the countries have rejected each other's proposals to end the war that began when the US and Israel attacked Iran on February 28.
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Cars drive past Stellantis in Windsor, Ont., on Friday, April 4, 2025. Stellantis announced a two-week shutdown of the Windsor plant where about 6,000 autoworkers will be laid off.

Overview

  • Industry data show wholesale prices have climbed by $5 or more per gallon to distributors after Gulf shipments were disrupted.
  • The Independent Lubricant Manufacturers Association warns of an imminent shortage of low-viscosity synthetics such as 0W-8, 0W-16, and 0W-20 used in many newer cars.
  • The squeeze stems from lost Group III base-oil flows through the Strait of Hormuz and damage to Qatar’s Pearl GTL plant that supplied a major share of these inputs.
  • Automakers have alerted dealers to possible constraints, and Nissan retracted a shortage bulletin as conditions remain fluid.
  • The White House and Energy Department say they are monitoring and weighing tools like Jones Act waivers, the API granted emergency licensing to broaden sourcing, and Valvoline reports adequate stock for now.