What happened
Australian retail petrol prices reached approximately $2.39 per litre, overshooting movements in underlying crude oil prices. AMP reported that Ukrainian attacks on Russian refineries reduced global fuel exports, causing refined oil product prices to blow out relative to unrefined crude oil.
Why it matters here
Surging fuel costs feed directly into freight rates and headline consumer prices. If Middle East disruptions persist alongside refined fuel shortages, global oil could reach US$150 per barrel and domestic petrol could exceed $2.70 per litre, further squeezing consumer discretionary spending.
What to watch
Diplomatic developments in the Middle East and global refinery output metrics over the coming weeks.
Source
amp.com.au