Australian dollar oil jumps back to its highs

Wednesday 31 July 2013

Tough night at the office for local oil prices. WTI jumped 2% on Libya’s confession that it’s lost 1 million barrels per day in production owing to local protests:

And the Pacific peso spent the evening under 90 cents:

Dragging AUD/oil back to the top of its recent range:

I maintain my view that below average global growth will prevent oil going higher and should bring it down 10-15%, unless these MENA problems persist.

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.