Last night offered a small reprieve in the Australian oil price off 1% or so to $116 as the dollar firmed and oil eased. However, recent rises in the oil price are now pushing through at the pump with last week’s unleaded metro average price leaping to its highest point since 2008. Here’s the weekly chart:
On the monthly average chart we are still at the top of the three year old trading range (in blue) but the weekly average shows you where it’s going (in red) in the next few weeks:
It’s odds-on we’ll hit record monthly average highs before the year is out. Again, however, I don’t expect it to rocket into space as oil falls back even as the dollar falls. But the peak will be much more enduring than in 2008. A permanently high plateau, no less!
