Australian economy and the oil shock

Monday, 16 September 2019

As we know, the global economy is on the edge of an oil shock as Saudi Arabia reels from Houthi rebel attacks. How will this impact the Australian economy and assets?

The largest single impact will be on Aussie households. Petrol prices are the largest average monthly spend already, via CommSec:

The mid-range shock scenario would see AUD oil prices at 2019 highs and an extended shock at all-time highs:

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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.