09 Mar Another energy shock and the threat from higher petrol prices
Key Points:
- Oil prices have spiked on the anticipation and now reality of restrictions on Russian oil supply from the war in Ukraine. This is driving a sharp rise in petrol prices which will hit household spending power.
- Fortunately, there is an offset in Australia from the boost to national income from higher energy prices and commodity prices generally and scope for the Federal Government to provide support for households in the upcoming Budget ahead of the election.
- A new commodity super cycle which includes the surge in oil and energy prices should be positive for the relative performance of Australian shares.