AUSTRALIAN households can expect to pay more at the petrol pump in coming weeks after crude oil prices rose to 10-month highs overnight.
H3 Global Advisor director Mathew Kaleel said petrol prices are likely surge over the next month, as political tensions in the Middle East combine with rising Asian demand and on-going constraints on global refining capacity.
"If things continue as they are, with Europe not imploding, that's going to buoy prices for everyone," said Mr Kaleel, a Sydney-based commodities investor. "I think we're going to see sustained higher prices for oil generally."
Adding to the pressure is yesterday's breakthrough on the long-awaited Greek rescue deal, which should ensure European demand for oil at least remains steady, he said.
Petrol prices may rise above $1.50 per litre in state capitals in the coming weeks, particularly if there is no resolution over Iran's disputed nuclear program, Mr Kaleel said.
Read more at Brisbanetimes.com.au
Update your news preferences and get the latest news delivered to your inbox.