Pain at the pump is about to get real

Friday, 2 August 2013

Wowsers! Or perhaps “bowsers” would be a better exclamation. Last night’s strong US data put a 3% rocket under the oil price and with Libyan production remaining troubled and seemingly offline for the foreseeable future, oil is threatening to breakout suddenly:

Meanwhile, the same US data pushed up the Us dollar on taper possibilities and the already weak Aussie got crushed:

The combination sent Aud oil to breakout highs at $121:

We’ve got record petrol prices coming down the pipe now.

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.