Summarised by Centrist
New Zealand petrol prices could climb towards $3.30 a litre if the recent increase in global oil prices continues, according to Westpac chief economist Kelly Eckhold.
Brent crude reached a six-week high of US$96 a barrel as Iran and the United States exchanged fire over the Strait of Hormuz. Threats from Iran-backed Houthi rebels have also raised concerns about the alternative shipping route through the Red Sea.
Eckhold said the oil crisis was “not over by any stretch of the imagination”, warning New Zealand should expect volatile fuel prices and further geopolitical shocks.
Earlier movements indicated 91 petrol could rise to about $3.10. However, Eckhold said the latest increase in oil prices could add another 20 cents.
The national average for 91 was about $2.89 on Thursday, according to Gaspy. It peaked at approximately $3.48 in April.
Any increase would depend on global oil prices remaining at current levels for several weeks. Eckhold said recent developments in the Gulf suggested “things have been getting worse, not better”.
Inventories of the refined petrol New Zealand imports have also been declining as disruption continues through the Strait of Hormuz and Red Sea.
Eckhold said he did not see an immediate fuel supply problem, but warned that could change if the disruption continued for several more months.
