If there’s anything decent to come out of the COVID-19 outbreak, it’s this.
In just two weeks’ time, prices at the bowser could drop as low as $1 a litre as the global oil price plummets.
Oil prices fell by more than 20 per cent over concern that the virus will see people cut back on travel.
Thing is, Organisation of the Petroleum Exporting Countries (OPEC) suggested cutting back oil production… but Russia wasn’t keen.
So, to punish Russia, Saudi Arabia took a razor to its official selling prices, promising to release more supply onto the market.
This then caused the international standard price to fall by 25.3 per cent to $33.83 per barrel – the biggest price fall for oil since 1991.
The ripple effect of this means cheaper prices in Australia, CommSec chief economist Craig James predicts as low as a buck a litre.
– with news.com.au