The ‘imminent’ oil crisis isn’t at the pump—it’s under your hood
The ongoing war in Iran has led to a significant supply chain crisis affecting engine oil changes in the U.S. Despite high domestic oil production, the country relies heavily on Middle Eastern base oils for modern motor oils. Prices are expected to rise sharply, with shortages anticipated as early as June.
- ▪Prices for motor oil have increased by approximately 35% and are expected to rise further.
- ▪The closure of the Strait of Hormuz has severely impacted the supply of Group III base oils, crucial for motor oils.
- ▪The American Petroleum Institute has introduced emergency provisional licensing to allow manufacturers to use alternative base oils.
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Prices at the pump have surged and global fertilizer shortages are spreading because of the war in Iran, but the most immediate supply chain crisis hitting consumers may be one that arrives every 5,000 miles: the routine engine oil change.Recommended Video Despite the United States’ world-leading oil production and refining capacity, the country is increasingly dependent on Middle Eastern supplies for the specific base oils that comprise most modern motor oils and lubricants. Now, lubricant refiners, automakers, and oil change service stations are sounding the alarm—prices are spiking, and supply shortages will hit in June. The catalyst is the ongoing closure of the Strait of Hormuz since late February.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Fortune.
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