Brent crude futures prices have consistently exceeded $109/barrel (A$156/barrel) since 16 October, higher than at any point since early May, because of unabated violence in the Middle East and Russia.
Brent crude futures last traded at $109.03/barrel on 20 October, up from $100.34/barrel on 21 September and $93.78/barrel on 20 August, Trading Economics data show. Brent crude prices have exceeded $109/barrel four times since the start of the US-Israeli war in Iran, usually for just days at a time.
Global oil prices have trended upward, fairly consistently, since the breakdown of a Pakistan-brokered US-Iran ceasefire in early July. Brent crude futures traded at a post-Iran war low of $71.57/barrel on 1 July.
Australian retail fuel prices have increased in recent months because of global oil price spikes. On 14 October, consumer petrol and diesel prices averaged A$2.42/litre and A$2.79/litre, respectively, across Australia’s five largest cities, data from the Australian Competition & Consumer Commission (ACCC) show.
Retailers in Australia’s largest cities sold petrol and diesel for A$1.71/litre and A$1.77/litre, respectively, on 20 February, immediately before the US and Israel bombed Iran, ACCC data show.
But Australia does not face significant fuel supply challenges, despite global oil disruptions. The country had 41 days’ worth of petrol reserves, 33 days’ worth of diesel reserves, and 28 days’ worth of jet fuel reserves on 17 October, in line with previous months, Energy Minister Chris Bowen told reporters at the time.
“The situation remains that Australia’s fuel security is solid in the face of the ongoing international uncertainty,” Bowen said. “[The Government’s focus is on] calm and steady engagement with trading partners … in the Middle East or Southeast Asia or Asia more generally, and working with our refineries,” Bowen added.
The Australian Government has ruled out Russian fuel imports in recent weeks. It has increased high-level diplomatic engagement with Asian and Saudi Arabian officials over fuel security challenges.
By Avinash Govind