One comment from US President Joe Biden has sent oil prices surging, sparking fears of skyrocketing petrol costs even as Australian motorists feel the pinch of long-weekend prices.
Global oil prices rose after Biden suggested on Thursday (US time, Friday morning AEST) that US and Israeli officials were discussing a possible strike by Israel against Iranian oil facilities.
“We’re in discussion of that,” Biden said to reporters.
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He added, “I think that would be a little – anyway,” without finishing the thought.
Biden also said he doesn’t expect Israel to retaliate immediately against Iran.
Iran is a major producer of oil, and a worry is that a broadening of the fighting in the Middle East could not only choke off Iran’s flows to China but also affect neighbouring countries that are integral to the flow of crude.
Helping to keep prices in check, though, are signals that supplies of oil remain ample at the moment.
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After Biden’s comments, Brent crude oil futures settled $US3 higher at $US77 ($112) per barrel.
In parts of Australia, the price of petrol has been going up over recent days too.
The average price of unleaded 95 petrol in NSW has risen over the last week to 194 cents.
The upcoming long weekend means drivers could be slugged with even higher fuel costs, with prices well over $2 per litre seen all over Sydney and Brisbane on Friday afternoon.
Data from the NRMA revealed last week that Sydney is currently enduring one of its longest petrol price cycles on record.
The data also revealed that 45 per cent of Sydney service stations are staying in the top end of the petrol price cycle for longer, and are charging the maximum prices possible.
– With Associated Press
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