Australia's oil price is expected to fall next week, due to international oil price fluctuations, according to Australian television station No. 9. In the past 24 hours, both Iran and Russia have announced plans to increase crude oil production to the international market.
International crude prices quickly fell $4 a barrel, from $91 a barrel to $87 a barrel, as soon as the news came out. Australia's gasoline prices are expected to fall between 3 and 4 cents a litre from next week, as Australia's oil prices have been in line with international prices.
In addition, the international oil group OPEC will meet this month to discuss increasing oil production. So experts expect international oil prices to fall further.
The news was a relief to the car owners in Australia.
International crude oil prices have risen 67 percent since June last year, while Australia's oil price has risen to its highest level in four years, with oil prices in some parts of the world reaching A $1.63 a litre.
The price cut means that the high price of oil for more than a year is expected to be broken and a new turning point is likely to be reached.
Some netizens couldn't help their excitement, leaving a message on Facebook: "good news."
However, some netizens feel that the price reduction is too small, and the actual effect is not obvious: "what is there to be pleased with?"
Some netizens feel that the most complete solution is to completely change to an electric or solar powered car: "I want to buy a Tesla."
In fact, the price of gasoline is not only related to the car family, but to everyone.
The goods in the Coles,Woolworth rely entirely on cars, and higher gasoline prices mean higher transport costs, which will eventually be passed on to consumers.
With the exception of gasoline, everything from lipstick to aviation fuel is closely related to oil. As a result, this upcoming price reduction, although probably modest, is after all a matter worthy of consumers' happiness.
But why did Australia's oil price stay high?
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One: what happened to oil prices in Australia?
One of the biggest factors affecting Australian oil prices is the surge in international crude prices.
In April this year, the United States, Britain and France launched a joint military strike against Syria in the name of anti-chemical and biological weapons. U.S. President Donald Trump tweeted that the attack was "perfect" and that allies of the United States had come forward.
Australia, though not directly involved in military operations, did not hesitate to "support the air strike."
But one of the consequences of the crackdown on Syria was a surge in international crude prices.
Syria, an established oil producer, accounts for only 0.04% of global oil production, but because of its geographical location, it has a lot of influence in the international oil market.
Syria is close to Iraq, a major oil producer, Saudi Arabia and Iran. It is also the center of a battle between the United States and Russia, and can be said to have a "pull-and-pull" influence. A military strike on Syria increases the risk of surrounding geopolitics.
At the same time, other OPEC announced a reduction in production, taking advantage of the opportunity to "hoard". The sharp decline in output has naturally led to higher prices.
Australia seems to support America's attack on Syria in April, and Australia is "lifting the stone and smashing its feet."
In addition, Australia's domestic oil production is declining year by year. Australia has been shutting down several aging refineries since 2015, and some of Australia's oil fields are on the verge of drying up.
Domestic liquid fuel production in Australia has fallen by about 30% over the past decade, according to the Federal Department of Energy. In the face of increasing domestic fuel demand and decreasing supply volume year by year, oil price is naturally high.
II: lessons from the oil shortage crisis
One of the biggest factors affecting Australian oil prices is the surge in international crude prices. The decline in domestic oil production makes Australia increasingly dependent on imported oil, and domestic oil prices are also increasingly affected by international oil prices.
Therefore, every time the international crude oil market appears large fluctuations, the domestic market immediately "heard the wind".
Behind the dependence on imported oil, however, lies a huge crisis. The U.S. military strike on Syria in April not only caused a surge in domestic oil prices, but also sent Australia's fuel reserves in jeopardy.
According to Australian sources, Australia's fuel reserves were only 43 days after April, and security was in jeopardy. Australia, as a member, should have at least 90 days of energy reserves, as required by the International Energy Agency.
It is reported that Australia is already the IEA member countries have the least energy reserves, but also one of the few countries in the world, the government does not set a minimum fuel reserves.
As early as the beginning of the year, Senator Jim Moran (Jim Molan) had warned the government that if oil supplies were insufficient, domestic reserves would not be sufficient to cope with the crisis. Any industry that needs gasoline, diesel and other fuels will be shut down.
In general, Australian oil is shipped out of the Gulf through Singapore, South Korea, China and other countries, and then into Australia. Any one of these problems could cause disruption to the domestic fuel supply chain, and Australia will have to rely on domestic fuel reserves to cope with the crisis.
And the Gulf, including the South China Sea, is a region of great power, and conflicts can easily escalate rapidly. This oil transport road is really a hidden risk.
Australia's government has been repeatedly caught in the "energy crisis". For all its perils, one cannot help but wonder whether the lessons of the oil crunch have awakened Australia's government.
epilogue
Oil price is not only a concern of the car family, but also closely related to everyone, economic and livelihood issues.
Gasoline as the representative of a variety of fuel has been the lifeblood of the country. Australia's current government policy may ostensibly guarantee Australia's oil supply, but there is a huge crisis behind it.
In this case, perhaps the government needs to rethink its domestic and international policies to safeguard national security.