Petrol prices continue to slide, with motorists the key beneficiaries. Ongoing concerns about global growth and a supply glut have kept a cap on global oil prices. In fact, domestic pump prices have fallen for seven out of the past ten weeks and are now holding at the lowest levels since early March…
According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol fell by 0.5 cents per litre to 124.2 cents per litre in the week to December 13. The metropolitan petrol price fell by 0.2 cents to 122.8 cents per litre while the regional price fell by 1 cent to 127.1 cents per litre…
The latest International Energy Agency report warned that global oversupply of crude oil could worsen next year. The International Energy Agency said that the latest moves by OPEC shows “renewed determination” to maximise crude oil production.
It’s no surprise that global oil prices have been under pressure. In fact over the past ten weeks, the Singapore gasoline price has fallen by 15.7 cents a litre in Australian dollar terms, the Australian wholesale price has fallen by 11 cents a litre while the pump price has fallen by just over 9 cents a litre. So the indicators all point to the slide in global oil prices continuing to filter through cheaper pump prices in the weeks ahead…
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
