Oil and Water
Am I getting this wrong? Oil is trading around $26 per barrel right now. Doesn't that make it cheaper than a gallon of drinking water from the store?
Forum Discussion
Marine By Choice wrote:
Just a question I thought of: When crude oil was $90+ a barrel a quart of 10-40W was around $4.00. Now with crude at less than $25 the quart is still the same price. Any idea why?
Part of the answer is that at the time they bought the crude oil to make the 10-W40 sitting on the shelf today, it was selling for a lot more $90/barrel. Also the cost of the crude oil is only part of the price of the oil on the shelf. You also have to factor in the cost to refine it, package it, ship it, etc. Most of those costs haven't changed.
