Oil prices are really up in Australia! With all kinds of commodity prices also skyrocketed to new highs!
One, the soaring oil price
Yesterday, Kunzhou RACQ issued an emergency notice: oil prices have risen to a three-and-a-half-year high!
(photo source: Brisbane Times)
According to reports, RACQ spokesman Renee Smith said oil prices in Brisbane had reached 153.2 per litre over the weekend, and that of Ipswich had reached 153.61 liters. "We haven`t seen more oil prices than 150cents/ since October 2014." She expressed helplessness.
In addition, the oil price in the new state has risen to an average of 137.4 per litre today.
(photo source: https://www.fuelcheck.nsw.gov.au)
Victoria oil price is even more exaggerated, directly "jump" to 150.4 / litre!
(photo source: https://www.racv.com.au/)
High oil prices mean that a prediction that few once believed came true: Australia`s fuel reserves have less than a month left! In fact, not only Australia, the world is facing the same sharp shock of rising oil prices!
2. Rising global oil prices
In terms of data, the WTI index, the two biggest benchmarks for international crude prices, has been priced at $68.24 a barrel, while Brent crude is as high as $73.98 a barrel.
(photo source: Jinjing.com)
In response to the recent rally, the OPEC and Russia`s output cuts over the past 16 months have helped push up crude oil prices; geopolitical risks are also part of the rise.
As we all know, as a result of the United States military attack on Syria, which has led to an increase in market panic, some OPEC countries also "sit on the ground" and take advantage of the opportunity to raise the price of crude oil, which has led to the so-called "panic rally." Notably, while oil prices have risen and global inventories have fallen, the OPEC is likely to maintain production cuts until 2019, with Saudi Arabia sending no signal that it wants to reduce production.
In addition, it is pointed out that under the current U.S. military strike against Syria, if the United States recently revealed strategic oil reserves, it is bound to put new pressure on oil prices. In other words, market analysts generally believe that international oil prices will continue to rise because of the international situation. Now, if anything happens to the United States, Australia is in fact the worst. Why do you say that? Because Australia is said to have less than 20 days of oil left in stock.
3, Australian media again warn: fuel is only 23 days
Australian media SBS, recently issued another warning: Australia`s fuel reserves will run out next month! And the reason is Syria!
Why would the United States strike Syria as far away as the Middle East against oil prices? SBS explained that was because most of Australia`s crude supplies came from the Middle East and then processed at refineries in South Korea, China and Singapore. From there, it turned into diesel, aviation fuel and gasoline and shipped to Australia by boat.
And although Australia has its own oil fields, unfortunately, there are few refineries available in Australia, and even a news release in 2014 said that Australia already imported the vast majority of its fuel. Because Australia`s existing refineries will be completely shut down by 2030.
(photo source: ABC)
That`s why the Syrian airstrikes have a big impact on Australia. In response to this situation, retired Air Force Lieutenant General John Blackburn (John Blackburn) was furious as soon as he mentioned Prime Minister Tanbao`s support for Syrian air strikes: although Australia`s oil supply is not directly related to Syria, But the escalation of the conflict is likely to cause Australia`s oil import channels to be cut off, and Australia has no so-called "plan B" for energy reserves and will then have to watch its own oil supply chain shut down.
The retired Air Force Lieutenant General warned that it was not comprehensive to think that the Syrian crisis would affect oil prices. What really scares people is whether the peaceful environment in the rest of the Middle East will be destroyed after the Syrian airstrikes.
This is not an empty wind, but a common concern. So, does Australia really have a so-called "plan B" for the fuel package? Energy Secretary Josh Frydenberg told SBS that Australia`s crude reserves have been below 90 days since 2012.
As of January, Australia`s oil reserves stood at $4.96 billion, with 23 days of gasoline available, 30 days of aviation fuel and 17 days of diesel reserves, while the rest is believed to have come from overseas credit.
Former Australian Army Major General Jim Moran (Jim Molan) warned that Australia`s reliance on overseas credit could cause problems if the Syrian crisis escalates. In other words, Australia is not only short of oil, even "lack of oil if thirsty" ah!
Why is Australia so short of oil
Why Australia is so dependent on fuel imports, experts explain that because prior to Australia`s crude oil production has been very high, so the net import volume is very low, but with the gradual closure of oil plants, the capital is withdrawn from Australia. The government only relied on imports rather than looking for a more effective way to address fuel stocks, leading to a problem that finally broke out.
It is no wonder that energy experts say: Australia is simply too "strange", have never seen such a country that does not care about their own energy security!
What is even more pressing for these experts is that even though Australia`s fuel supply will not be completely cut off with the Middle East situation, the world knows that Australia is short of oil, which will allow oil-exporting countries to take advantage of the "lion`s mouth". In this way, Australian oil prices will rise, transport costs will rise, including our commodity prices will also rise.
For example, air travel will be more expensive because of rising oil prices and soaring air fuel prices; Prices for retailers such as Coles,Woolworths,Aldi will also rise as transport costs rise, especially for fresh vegetables, meat and eggs, which will start again.
And Australia has developed animal husbandry, meat has been very cheap, milk is also claimed to be "cheaper than water," but because of the increase in transport costs, it may be over, and not only that, because of increased transport costs, the price of medicines will also soar. The friends of purchasing agents can only watch themselves lose a lot of money.
None of this is groundless, but because the same problem has arisen in Canada. Canada`s material prices are up 10 percent because of higher oil prices, according to a local official account in Canada.
So, we always thought war was a long way from us, and in fact, in an era of globalization, any geo-conflict would lead to a global chain reaction. Even as a result of this Australian-backed military strike, which ultimately affects the daily lives of Australians, few people, including politicians, think of it.
However, the so-called gains and losses, the Blackburn pointed out that Australia is currently facing a shortage of oil and rising oil prices across the country, in fact, is also a warning to the Government that new solutions must be found quickly to address the fuel supply problem. "I think it`s good because we`re so relaxed in Australia. What happened in Syria is a warning to us that the Middle East is unpredictable. " Perhaps it is also a time to buy lessons for Australia, which has always liked a corner and a bustle.
Finally, according to the Courier Mail, only oil prices in the three main eastern states are still barely hovering at 135 per litre, which has led residents of Victoria and Kunzhou to start "oil grabbing" in the new state. So no matter where you live, please be calm about the current oil price in Australia.
