Key events
Luca Ittimani
Rising fuel prices could force interest rate rise
Shane Oliver, chief economist at AMP, said fuel prices could rise another 10 cents as the rebound in oil prices had not yet fully flowed through, in a note on Friday.
Oil prices would rise further if the conflict in the Middle East continued and global stockpiles ran short, Oliver said.
The longer the strait remains closed and the war escalates, the greater the risk that oil prices will have to rise to around $US150/barrel to bring demand down to match the hit to supply.
Prices are set to rise a further 16 cents when the federal government’s partial fuel relief expires on 2 August. Oliver predicted the government would extend the excise cut.
Rising prices would add to inflation, increasing the chance of an interest rate hike from the Reserve Bank. Markets on Friday were betting on a 65% chance of a hike by December, up from about 50% a week earlier.
Luca Ittimani
Diesel prices rise 15 cents in five days
Diesel prices have risen 15 cents a litre in five days as Donald Trump’s war in Iran lifts global oil prices.
Oil and fuel costs have risen to their highest levels in over a month. Brent crude oil prices fell to nearly US $70 a barrel after the mid-June peace deal between the US and Iran but have risen to US$88 after over a week of strikes.
Rising oil costs have pushed up wholesale prices for diesel and petrol, with service stations passing the increase on to motorists.
Diesel prices have risen from 192.8 to 209.9 cents per litre from Monday to Saturday in Melbourne, according to MotorMouth average data. Diesel hit 207.1 cents in Brisbane, 205.1 in Sydney, 204.3 in Adelaide and 201.5 in Perth.
Unleaded petrol prices are up seven cents per litre in a week, at 177.5 cents per litre in Brisbane, 175.8 in Melbourne and 172.5 in Sydney.
Ski fields reach temperature July highs on Saturday
Petra Stock
It was a remarkably warm day in the Australian alps yesterday, with several ski fields reaching temperatures that look set to be record-breaking (the records are yet to be confirmed by the Bureau of Meteorology’s climate team).
Mount Hotham reached 11.1C. That’s 2.4C higher than the previous July record of 8.7C set in 1994.
Falls Creek hit 11.5C, topping it’s previous highest July maximum of 9.8C in 1992.
Perisher in New South Wales hit 11.9C, which also looks set to be a new July high.
Dr Andrew Watkins, a research associate at Monash University who posted the observations to social media, remarked:
Big slow moving high pressure systems creating large areas of descending & warming air hitting a radiation inversion = warm air trapped above the ground. Plus climate change…
Back in June, the BoM was anticipating poorer conditions for snow, with a warmer and drier winter forecast.
Penry Buckley
Welcome
Good morning, and thanks for joining us. I’m Penry Buckley and I’ll be taking you through today’s breaking stories. Let’s get started.
Several ski fields have recorded temperatures that look to be record-breaking on a remarkably warm day in the Australian alps yesterday. More details on that soon.
Diesel prices have risen 15 cents a litre in five days as Donald Trump’s war in Iran lifts global oil prices, with fighting escalating over the strait of Hormuz.
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