Australian dollar oil price rips

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Up to $111.40 overnight on weakness in the Aussie and instability in Egypt. This is the highest price since 2008. May not be an inflation problem but it’s going to be a consumption one.

Comments

      • FWIW
        My new price list goes out mid-August for application beginning Sept. For one reason and another we have a few months delay from when our replacement costs go up. I’d think this applies to most businesses. I would think Q3, Q4, and 2014Q1 will see the price response to the drop in the dollar become publicly apparent.
        We have absorbed all the major domestic cost risings over the past year to fifteen months. I’d surmise again this applies to most businesses and there would be a fair bit of preesure in the pipeline.

        I suspect the price increase phenomenon may be little different in pattern to other processes. Zero change at first, then slow, then a cascading effect with immediate response to every subsequent change.

  1. TheRedEconomistMEMBER

    HnH,

    Quick question.

    What Oil price are you using?

    WTI? Sing Gas Oil?

  2. WTI has been hovering around USD $96/bbl since early May until the last few days when its shot up on Egypt tensions (I think).

    During the same period the AUD has crashed from $1.04 to 90 cents.

    The flip side of this is the price of iron ore in AUD which must also be spiking, so again, can we please have a chart of iron ore in AUD since early May?