Outboard Motor Oil

 Crude oil prices increased by over $1 a barrel yesterday as a declining dollar encouraged investors to buy stocks as an inflation hedge, or investment intended to protect against risk of inflation.  (Natural resources operations stocks are one of the most popular commodities used as an inflation hedge, as its value predictably rises with inflation.)

“At this stage, the gyrations of the dollar are the primary movers of the oil market,” said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA, Inc. in New York. “The focus will remain on the value of the dollar against the euro.”  The price of bulk oil is up about 59% from a year ago.

(Information Courtesy of Bloomberg News)

Bombardier Recreational Products (BRP), the private company that owns the Evinrude brand, kicked off a year-long celebration of Evinrude’s 100th anniversary on February 14, 2008 at the Miami Boat Show.  Always on the cutting edge of boating innovation, Evinrude moves into the future with its line of E-Tec outboard motors, the most environmentally friendly outboard motor in the world.  Evinrude also has a popular line of boat motor oil.

“By letting people throw away the oars, Evinrude outboard engines have introduced scores of people to the joys of boating and turned these people into lifelong boating enthusiasts,” Roch Lambert, vice president and general manager of the outboard motor division at BRP, said at the time.  “Indeed, in its proud history, Evinrude has sold more engines worldwide than any other outboard manufacturer. People know that buying an Evinrude means buying a trusted brand name that delivers everything they want in an outboard engine,” Mr. Lambert continued.
 

     
A few days ago in this blog, I compared 2-stroke and 4-stroke outboard motors.   In the news this week, another question arose.  The year 2006 was the original deadline the Environmental Protection Agency (EPA) gave for all outboard motors in use to meet new, more stringent emission requirements—levels so low that many consumers believed that 2-stroke motors would have to be done away with altogether, simply because they did not have the technology the EPA guidelines would require.  However, almost three years later, two-stroke outboard motors are still being sold, even though statistics have shown that up to 40% of the gas and oil in a two-stroke motor’s gas tank enter the water unburned.  One study suggests that a 70-horsepower outboard motor emits as many hydrocarbons per hour as the average automobile driven about 5,000 miles.

There are currently no regulations demanding the disposal of two-stroke outboard motors, which are still acceptable in all but a very few situations.  Some of these motors are over 25 years old and still running smoothly, but their overall fan base is dwindling due to environmental concerns.  The real issue is not with all two-stroke motors, but with the older models that are not directly oil- or fuel-injected, where the outboard motor oil and fuel are mixed in a can prior to use.

Oil prices held near $119 a barrel Wednesday as weekly data was being collected to further confirm declining crude oil demand in the United States.   In Europe, New York and London, crude oil prices went down by margins from 53 cents per barrel to around $2.25 per barrel.  Commodity market insiders speculated that oil prices would probably continue to drop unless the U. S. Energy Department’s Energy Information Administration’s weekly oil inventory report shows that gasoline stocks fell significantly as well.

The worldwide market appeared to be reacting to uncertain demand outlook in several countries.  The U.S. Federal Reserve issued a statement Tuesday that its key interest rate would remain at 2 percent for the time being.  In summation, the Fed statement said that higher energy prices were bound to affect the economy over the next few fiscal quarters, possibly lead to a marked reduction in the demand for bulk oil. 

Oil prices fell to less than $122 a barrel this week, extending the decline of expectations that 2008’s rising energy costs are undercutting the demand for gasoline in the United States.  The recent gradual strengthening of the U. S. dollar against the euro and the Japanese yen is also keeping  bulk oil prices lower–investors tend to buy commodities when the dollar softens, selling when U. S. currency becomes healthier again.

Crude oil futures have declined significantly in the past three weeks.  Prices remain about 60 percent higher than they were at this time last year.

Not unlike the growing popularity of hybrid cars, increasing gas prices are causing boating enthusiasts to think smart.

This year, as boat sales in general seems to have slowed, there has been a 50% growth in electric boat sales.  The boats still utilize outboard motor oil, yet they provide relief at waterside gas stations, which generally charge more for gas than roadside gas stations, as there is little in the way of competition.

Once again, the prices of bulk oil have fallen, trading at $133.64 from nearly $140.  Gas prices, however, remain around $4.11 per gallon.  Though analysts suggest that the sporadic rise and fall of oil means that the previously mentioned breaking price of $150 per barrel will happen, the price jump has been a headache for many Americans, stifling traveling via plane or car; and even affecting the boating industry.

The price of bulk oil dropped today, even at the reports of Hurricane Bertha.  The strengthening of the American dollar and the ease of a storm on the Gulf coast has caused oil to tumble down below $136.

Despite this, gas prices are remaining at $4.10 a gallon.  Because of these prices there have been a lack of demand for gas, as many Americans have opted to stay home or limit their vacations this year.

As we inch closer to the 4th of July weekend, bulk oil prices are still increasing as supply and demand in the U.S. dwindle.  With a weak economy and threat of war in the Middle East, oil and gas prices have been fluctuating for months.

Despite all of these issues, analysts are still claiming that gas and oil prices will slide once a peak (which at press time has been around $143 a barrel) has hit.