Motorists can expect further reprieve at the petrol bowser with analysts predicting continued falls in the price of oil and thereby petrol.
For years, China has been the single biggest driver of oil demand expansion as its economy rapidly grows.
But this month, both the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) lowered their growth forecasts for global oil demand, citing weaker Chinese consumption.
That caused the price of Brent Crude to fall below $US70 a barrel this month, its lowest level in almost three years.
The price is now hovering around $US73 dollars, but analysts expect the price to fall as low as $US65 dollars a barrel in coming weeks.
That would see a fall in what consumers pay at the bowser. The average national price of petrol is expected to fall between $1.65 to $1.70 over the coming weeks.
The big risk to that forecast is an escalation of tensions between Iran and Israel. Should they escalate, and should that spark a regional war in the Middle East, that would hurt oil supply and could see petrol prices rise again. Economists say while falling prices are good for consumers, it won't lower underlying inflation as much as Reserve Bank wants it to. They say interest rate cuts are still not likely until next year.
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18 сен 2024
