Cheaper crude oil will impact on the demand for synthetic motor oil in the near to medium term.

There’s no doubt that synthetic motor oils outperform regular engine oil in most areas but for now cheaper crude oil will impact on the demand for synthetic motor oil – which could be a temporary setback for the industry... and in the long term the consumer as well.


The plummeting price of oil is the biggest energy story in the world right now. It's bringing back cheap gasoline to the United States, and seeing some stocks increase in value, while wreaking havoc on oil-producing countries like Russia and Venezuela.

But why does the price of oil keep falling? Back in June, the price of Brent crude was up around $115 per barrel. By mid-December, it had fallen nearly in half, down to $59 per barrel, and synthetic lubricant suppliers are wondering to what extent cheaper crude oil will impact on the demand for synthetic motor oil?

The short version of the story goes like this: For much of the past decade, oil prices were high — bouncing around $100 per barrel since 2010 — because of soaring oil consumption in countries like China and conflicts in key oil nations like Libya. Oil production couldn't keep up with demand, so prices spiked.

Cheaper crude oil will impact on the demand for synthetic motor oil as well as consumer trends.

Because of the trend of ever increasing crude oil prices industrialised nations began a wave of energy awareness: With motor vehicles at the forefront. Driven by ever tightening emissions regulations and consumer demands for more economical cars, fuel consumption began to tumble with synthetic motor oils playing an important role with the introduction of super thin engine oils such as the 0WXX commonly used in new models.

But consumers are driven by price and therefore it’s expected that cheaper crude oil will impact on the demand for synthetic motor oil. The oil price crash is now upending the global economy, with ramifications for every country in the world. Low prices are excellent news for oil consumers in Japan and the US, where gasoline is the cheapest it's been in years.

But it's a different story for countries reliant on oil sales. Russia's economy is melting down. Venezuela is facing serious unrest. And even better-prepared countries like Saudi Arabia could face heavy pressure if oil prices stay low.

And it’s not just the obvious fact that cheaper crude oil will impact on the demand for synthetic motor oil: Even the fate of sales of the best-selling vehicle in North America looks uncertain. The 2015 F150, that sells more units than the top 6 passenger cars combined, may have a problem with the timing of its radical new aluminium body technology. Punted as the most economical F150 ever, the drop in the crude petroleum price may just make this a non-event.

Cheaper crude oil will impact on the demand for synthetic motor oil but not the performance.

Automotive manufacturers are forever improving technologies used to make vehicles more fuel efficient and cleaner, and because of this cheaper crude oil will impact on the demand for synthetic motor oil for a relatively short time. Current downsized high performance engines need similar high performance protection from high performance synthetic motor oil. This protection can only be guaranteed when quality synthetic motor oil, such as that produced by Habot Oil is used.