How Long Will Petrol Prices Keep Spiking?

Photo: Getty Images

Attacks on two Saudi Arabian oil plants last weekend could mean higher petrol prices here in Australia. But for how long?

The drone attacks, which damaged one of the world’s largest oil facilities, took about 6 per cent of the global supply of oil off the market. Oil prices jumped more than 14 per cent almost immediately, the biggest one-day spike in more than 30 years according to CBS News.

But changes at the pump aren’t expected to be severe. The faster the facilities return to production, the less of an impact you’ll see. Officials in Saudi Arabia said on Tuesday they think they can fully replace at least a third of that output level this week, according to the Wall Street Journal.

Full restoration of the facilities that were attacked is likely to take several weeks, and prices should return to normal soon after.


Comments

    When something happens to cause oil prices to go down, the price at the bowser doesn't follow immediately, with retailers citing the lead time required to sell fuel bought at the earlier higher price. When something happens to cause petrol prices to go up, the price spikes appears to happen almost immediately, despite the retailer still having stocks bought at a lower price. Does anyone else see this?

      It's almost like they're just charging however much the market will tolerate, and latching on to any old line to justify it.

      Not that it's unique - everyone has their hand in your pocket for totally legit reasons these days, and none of them are shy about asking for more than they did last time. Much easier to tolerate if we had something resembling wage growth, but that's a different story...

    But changes at the pump aren’t expected to be severe? Surely you're kidding yourself?

    Prices have jumped to $171.9. Petrol retails just cashing in on the opportunity. @64anthonyp is all over it, retailers are happy to sell cheaper petrol at the high price instantly, but always slow to bring their prices down.

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