Middle East escalation to drive up petrol prices

Politics live: petrol prices set to rise ‘even higher’; Labor’s private health reform for over-65s condemned as ‘lazy’

Jonathan Barrett

Oil prices are rising today after the widening Middle East conflict sparked new supply fears, driving Brent crude up more than 3% to US$108 a barrel this morning.

The price rally follows fresh Houthi strikes on Saudi Arabia, which have led to the temporary closure of a vital oil pipeline.

Most shipping in the crucial Strait of Hormuz has also stopped amid renewed tension between Iran and the US after failed peace talks.

The crude disruptions are driving up prices across refined derivatives like petrol, ending a period of market calm during which traders had expected normal supplies to resume.

AMP’s chief economist, Shane Oliver, says petrol prices are “likely heading even higher with rising global oil prices”.

Australian fuel prices could climb a further 20-30 cents a litre in the coming weeks, testing the high levels reached in the weeks immediately after the initial US-Israeli strikes on Iran.

The national average retail petrol price rose by 5.6c a litre last week to $2.11, according to the Australian Institute of Petroleum.

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Hastie says Whyalla’s reported impending closure a ‘brutal blow’

The shadow industry minister, Andrew Hastie, says the expected closure of a blast furnace at the Whyalla steelwork is a brutal blow for hundreds of workers and the country.

The shutdown, which will soon be announced, may see as many as 500 Australian workers lose their jobs, as well as 100 contractors working at the site.

Hastie is doing a doorstop ahead of question time and blamed the government’s energy transition:

double quotation markThis is a brutal blow for 500 Aussie workers, a brutal blow for the town of Whyalla and a brutal blow for Australia as much sovereign capability. What we have seen now as the closure of 75% of Australia’s capacity of structural steel making.

It is a future made overseas, not a Future Made in Australia, and this is all caused by Labor and its relentless ideological pursuit of a net zero climate targets.

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