Australian dollar oil leaps again

Thursday, 11 July 2013

Another tough night at the office for the Australian dollar oil on MENA tensions, rising above $116:

This does not look sustainable to me. Waning Chinese growth, spiking US interest rates and ongoing European wrangles are no recipe for an oil spike. Falls from here would probably be paced by further declines in the Australian dollar so the Australian dollar oil price may stay high but much higher seems unlikely.

The price spike is yet to show up at the pump but it’s coming.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.