Oil going up , so is petrol

John from East Invercargill

Anyone that fills the tank will know that petrol prices have been going up so I thought I would let people know that don't follow the international oil market that they can expect further increases at the pump. Last October Brent oil was 37 USD , today it is 82 USD. There was a drop last month down to 65 but added 15 $ last two weeks. The US Department of Energy ( DoE ) have decided not to tap into the strategic reserves which may have taken a "little" pressure off. The cost of international gas has risen dramatically recently to around the equivalent of 200 USD a barrel so many industries are switching from gas to oil which is putting more upward pressure on the oil price. With the Northern hemisphere heading into winter there is again an increased demand for heating oil. All points to further increases at our pumps. This is not a definitive and exact look at the oil market but a basic heads up of what we can expect over the next few months so those that bother can prepare for an increase in their weekly fuel bills along side increases in food transport costs . How much will that be I don't know but another 10- 15 cents per litre should not be a surprise in the next few weeks and leading up to Christmas .. Saudi Arabia have an expensive war with Yemen to pay for plus guaranteed dividends for Aramco and Russia will be quite happy to make some more from their oil in face of various sanctions from the US so I don't expect any love and caring coming from that direction to force the price down.