As Longtime Readers know, I’m not shy to take the occasional swipe at Oz and the Strylians. This, however, is not good:
We are fifteen days into the Iran–US war. The Strait of Hormuz, the narrow stretch of water through which 20% of the world’s oil and gas normally flows, is effectively closed. Tankers have been hit. Insurers have pulled coverage. Commercial shipping has ground to a standstill for over a week. Brent crude closed Friday at US$103 per barrel, up from $70 before the war, having already spiked to $119.50 during the week. Iran’s military spokesperson has warned oil could reach $200.
Australia imports over 90% of its refined petrol, diesel and jet fuel, almost all of it processed in Asian refineries that are now hoarding output for their own populations. China has banned refined fuel exports. Thailand has suspended petroleum exports. Singapore and South Korean refineries are operating under force majeure. The International Energy Agency has just announced the largest emergency stockpile release in its 50-year history — 400 million barrels across 32 nations.
When the world’s energy watchdog fires its biggest gun, you don’t need a PhD to know the situation is serious.
I hope my Oz Readers (both of them) will take this warning to heart, if they haven’t already.
It’s no longer a joke.
Diesel fuel in Australia is already at US$7.80 a gallon.
Australia is a huge country and mainly depends on diesel fuelled trucks for ongoing food supplies.
Seeding is about to begin and farmers exclusively use diesel for tractors etc.
Hundreds of rural gas stations and suppliers have run out of diesel.
Not looking good.
My maths isn’t sparkling, however at a local (not motorway, they’re much more) petrol station, Diesel is an equivalent to about $8.68.
Travelling from Cornwall yesterday we saw Diesel as high at £1.81 per litre with petrol at £1.51….…
I’m currently paying (Perth, Western Straya) $8.00USD per US gallon. But you also need to take into account the distance between places around here. For example, from Augusta in the SW to Kununurra in the north is about 3600 km, or about 2250 miles.
North to south, Perth is now longer than LA (but not larger!)
The world should just eat some crow, suck up their Trump Derangement Syndrome and send ships to work with the United States Navy to keep the straights of Hormuz open.
I thought there was a pipeline across Saudi Arabia to transfer oil from the Persian Gulf to the Red Sea
Play global games, pay global prices.
I prefer local everything.
And isolation.
Well, the original Mad Max films were in Oz, so …
I guess it’ll seem like old times to them, racing up and down the highways, fighting for the last few drops of oil, Lord Humongous with a bullhorn imploring the poor wretches to simply open up the gates and allow his horde access to the refinery. Ass-less chaps and gay motorcyclists will be back in fashion soon.
you’re right. I guess we shouldn’t be concerned until the Straylins start dressing like the characters in Mad Max.
Snarky-ness aside.
I suspect these fuel famines are gonna get blamed on the war, when they should be blamed on the Greens. God may cause shortages, man causes famines.
Regrettably, they are universally blamed on Trump and Netanyahu, at least here in Australia.
I hate it when you have to import Americans and Israelis to massacre Jews on a Aussie beach.