Good news for motorists: the price of oil has gone down around 7 percent in the last week.
The Brent Crude oil price dropped below US$80 a barrel at the weekend, after OPEC+ came to a deal to extend voluntary production cuts.
NZ Business editor-at-large, Liam Dann told Jack Tame “That’s good news for motorists – and good news on the inflation fight.”
Dann said “We want to see renewable energy – but everything in the economy is underpinned by the price of oil.”
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Episode Transcript
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Speaker 1 (00:00):
Good news. If you're looking at the price of petrol
and you're thinking you might fill up your car sometime soon, well,
the price of oil should be coming down shortly. The
price of Brent crude has been trending down over the
past week, and it may still have some way to go.
Liam dan Is, The Herald's Business editor at large. Kida, Hi, Jack,
So where's the price at now?
Speaker 2 (00:20):
Well, it's still sitting about seventy eight something for a
barrel of Brent crude if that's what you feel like
getting for yourself US seventy eight. That's good news for motorists,
right because it's below eighty And we saw it slump
about six or seven percent at the weekend, so you
know that was to do with weird stuff like OPEK
(00:41):
trying to sort of consolidate its production cuts and then
not impressing the markets with how heavily they consolidated them.
So you'd think it would go up, but it didn't.
Speaker 3 (00:50):
It went down.
Speaker 2 (00:51):
And there there's some numbers out of the US on
US production that was strong. But oil has been coming
off since the start of the quarter, which is also
kind of good news on the inflation fight. You know,
they need to go into it all. But obviously oil
flows for everything.
Speaker 3 (01:05):
Still.
Speaker 2 (01:06):
You know, we want to see renewable energy and all
that stuff, but actually, you know, everything in the economy
is underpinned by the price of oil, transporting all your
goods and manufacturing of plastics.
Speaker 3 (01:18):
And all that stuff.
Speaker 2 (01:19):
So that's quite quite good news on maybe what we'd call.
Speaker 3 (01:22):
The tradable side of inflation.
Speaker 2 (01:24):
I know the Reserve Bank can't get excited about that
yet because a could move back up and be there
focused on the non tradable bit, the bit of New Zealand,
you know, the wages and assurance prices and all that
sort of.
Speaker 1 (01:35):
Stuff, rates and that sort of thing. Yeah, right, So
how fast should we expect the fuel companies to pass
on any savings?
Speaker 2 (01:42):
If they do, I think, I look, this is me
putting the acid on the look. Yes, I think that
we should see the pump price continue to fall a
bit through the next week. It takes a while to
flow through, but not not that long. I mean, it's
pretty immediate commodity price then compared to something like dairy
price is where it can take months for it to
go from the what we see in the Fonterra auction
(02:05):
thing through through your block of cheese. Petrol transmits pretty quickly.
The New Zealand dollar has been a bit stronger four
percent up I think in the past month, if I'm
remembering the ben z ed note correctly, and I look
at that the website, gaspy and you know, so we're
oil prices off for around fourteen percent since the start
(02:27):
of the quarter. Two months we've seen that so far
according to Gas by the you know, in the last
month unleaded ninety ones down about.
Speaker 3 (02:36):
Six and a half percent. So that's not bad.
Speaker 2 (02:39):
That's a reasonable pass through, but it doesn't shouldn't have
captured yet what we saw at the weekend. So that's
you know, maybe a suggestion that you haven't filled up yet.
Wait a couple of days. Hopefully it's a bit better.
Speaker 1 (02:49):
A bit better. Is it? Gaspy?
Speaker 3 (02:52):
Gaspy as well? Looking I always thought it.
Speaker 1 (02:53):
Was gas spy could be because it not gaspy. I've
been saying gas by all these years. I've saying again,
one of us is going to be right, one of us.
There's nothing else right your gas.
Speaker 3 (03:04):
Yeah, yeah, I mean, look I look at the website. Yeah, gaspy, Yeah,
I mean it is about gas, isn't it? You're probably sure?
Speaker 1 (03:11):
Yeah, No, well, I'm usually wrong with these things.
Speaker 2 (03:16):
It's a good pun play on words, which is totally
by Okay, if.
Speaker 1 (03:20):
You know, please let us know. Is it gasp be
your gas? By ninety two ninety two? There's some yeah,
I mean if indeed we do see a bit of
a fall at the pump, I mean right across the board.
Given you know that, as you said, oil passes through everything,
this is ultimately going to be a little bit of
good news in that fight for inflation. But it's the
non tradables of the domestic stuff that's still kind of sticky.
Speaker 3 (03:39):
Yeah, you can into the weeds on that stuff.
Speaker 2 (03:41):
They do.
Speaker 3 (03:41):
They do sort of cross pollinate a bit.
Speaker 1 (03:43):
But you know, oil price doesn't hit rents, for example,
It doesn't necessarily hit.
Speaker 2 (03:47):
Rates for it, No, I mean, it's an influence when
it's spiked up above. I think I got to one
hundred and twenty something US stoll as a barrel in
twenty twenty two. It obviously was one of the sparks
that you know, drove that really high inflation. You know,
the financial the economic purists will tell you it's all
money supply. I think it's a bit of a bit
(04:07):
of a mixture, but you know that the price we
play pay for commodities is very much a real world
part of the price that feeds into everything.
Speaker 3 (04:15):
I appreciate your time, Thank you very much. Liam.
Speaker 1 (04:17):
That is Liam Dan the NZ Herald to business or
at large.
Speaker 2 (04:22):
For more from Hither Duplessy Alan Drive, listen live to
news talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio.
Good news. If you're looking at the price of petrol
and you're thinking you might fill up your car sometime soon, well,
the price of oil should be coming down shortly. The
price of Brent crude has been trending down over the
past week, and it may still have some way to go.
Liam dan Is, The Herald's Business editor at large. Kida, Hi, Jack,
So where's the price at now?
Speaker 2 (00:20):
Well, it's still sitting about seventy eight something for a
barrel of Brent crude if that's what you feel like
getting for yourself US seventy eight. That's good news for motorists,
right because it's below eighty And we saw it slump
about six or seven percent at the weekend, so you
know that was to do with weird stuff like OPEK
(00:41):
trying to sort of consolidate its production cuts and then
not impressing the markets with how heavily they consolidated them.
So you'd think it would go up, but it didn't.
Speaker 3 (00:50):
It went down.
Speaker 2 (00:51):
And there there's some numbers out of the US on
US production that was strong. But oil has been coming
off since the start of the quarter, which is also
kind of good news on the inflation fight. You know,
they need to go into it all. But obviously oil
flows for everything.
Speaker 3 (01:05):
Still.
Speaker 2 (01:06):
You know, we want to see renewable energy and all
that stuff, but actually, you know, everything in the economy
is underpinned by the price of oil, transporting all your
goods and manufacturing of plastics.
Speaker 3 (01:18):
And all that stuff.
Speaker 2 (01:19):
So that's quite quite good news on maybe what we'd call.
Speaker 3 (01:22):
The tradable side of inflation.
Speaker 2 (01:24):
I know the Reserve Bank can't get excited about that
yet because a could move back up and be there
focused on the non tradable bit, the bit of New Zealand,
you know, the wages and assurance prices and all that
sort of.
Speaker 1 (01:35):
Stuff, rates and that sort of thing. Yeah, right, So
how fast should we expect the fuel companies to pass
on any savings?
Speaker 2 (01:42):
If they do, I think, I look, this is me
putting the acid on the look. Yes, I think that
we should see the pump price continue to fall a
bit through the next week. It takes a while to
flow through, but not not that long. I mean, it's
pretty immediate commodity price then compared to something like dairy
price is where it can take months for it to
go from the what we see in the Fonterra auction
(02:05):
thing through through your block of cheese. Petrol transmits pretty quickly.
The New Zealand dollar has been a bit stronger four
percent up I think in the past month, if I'm
remembering the ben z ed note correctly, and I look
at that the website, gaspy and you know, so we're
oil prices off for around fourteen percent since the start
(02:27):
of the quarter. Two months we've seen that so far
according to Gas by the you know, in the last
month unleaded ninety ones down about.
Speaker 3 (02:36):
Six and a half percent. So that's not bad.
Speaker 2 (02:39):
That's a reasonable pass through, but it doesn't shouldn't have
captured yet what we saw at the weekend. So that's
you know, maybe a suggestion that you haven't filled up yet.
Wait a couple of days. Hopefully it's a bit better.
Speaker 1 (02:49):
A bit better. Is it? Gaspy?
Speaker 3 (02:52):
Gaspy as well? Looking I always thought it.
Speaker 1 (02:53):
Was gas spy could be because it not gaspy. I've
been saying gas by all these years. I've saying again,
one of us is going to be right, one of us.
There's nothing else right your gas.
Speaker 3 (03:04):
Yeah, yeah, I mean, look I look at the website. Yeah, gaspy, Yeah,
I mean it is about gas, isn't it? You're probably sure?
Speaker 1 (03:11):
Yeah, No, well, I'm usually wrong with these things.
Speaker 2 (03:16):
It's a good pun play on words, which is totally
by Okay, if.
Speaker 1 (03:20):
You know, please let us know. Is it gasp be
your gas? By ninety two ninety two? There's some yeah,
I mean if indeed we do see a bit of
a fall at the pump, I mean right across the board.
Given you know that, as you said, oil passes through everything,
this is ultimately going to be a little bit of
good news in that fight for inflation. But it's the
non tradables of the domestic stuff that's still kind of sticky.
Speaker 3 (03:39):
Yeah, you can into the weeds on that stuff.
Speaker 2 (03:41):
They do.
Speaker 3 (03:41):
They do sort of cross pollinate a bit.
Speaker 1 (03:43):
But you know, oil price doesn't hit rents, for example,
It doesn't necessarily hit.
Speaker 2 (03:47):
Rates for it, No, I mean, it's an influence when
it's spiked up above. I think I got to one
hundred and twenty something US stoll as a barrel in
twenty twenty two. It obviously was one of the sparks
that you know, drove that really high inflation. You know,
the financial the economic purists will tell you it's all
money supply. I think it's a bit of a bit
(04:07):
of a mixture, but you know that the price we
play pay for commodities is very much a real world
part of the price that feeds into everything.
Speaker 3 (04:15):
I appreciate your time, Thank you very much. Liam.
Speaker 1 (04:17):
That is Liam Dan the NZ Herald to business or
at large.
Speaker 2 (04:22):
For more from Hither Duplessy Alan Drive, listen live to
news talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio.
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