Australian Media: Australia to Face "Critical Moment" for Oil Supply in Coming Weeks

This article is reprinted from [Xinhua News Agency];

Xinhua News Agency, Melbourne, March 23 (Reporter Xiong Wenyuan) Recently, Australian media reported that the Middle East conflict has caused a surge in international energy prices. Australia relies heavily on imported fuel, making it vulnerable to global supply shortages. The country is at the end of the fuel supply chain and will face a critical period for oil supply in the coming weeks.

According to the Australian Broadcasting Corporation, only two domestic refineries are still operating, with over 80% of finished oil products such as gasoline, diesel, and aviation fuel imported, almost entirely from Asia. Most of the crude oil needed for Asian refined products comes from the Middle East, mainly transported through the Strait of Hormuz.

The media believes that the global oil market is facing serious supply disruptions, and the market is still underestimating the duration and destructive power of this impact. Even if the Strait of Hormuz reopens, shipping insurance may not recover quickly, and the damage to the global and Australian economies could worsen further.

The Australian newspaper reported that the energy market turmoil caused by the Middle East conflict has significantly increased costs for Australian manufacturing and logistics industries. DHL recently informed its Australian customers that, in the second week of the Iran conflict, diesel prices in Australia rose by 30% to 50%. The company has adjusted its fuel surcharge cycle from “monthly” to “weekly.”

Another article in The Australian stated that the sharp rise in oil and natural gas prices has led Australian households to face “another expensive winter.” Reserve Bank of Australia Governor Michelle Bullock believes that higher fuel costs are beginning to permeate the country’s economic fabric and may further boost inflation expectations.