+34
Australia’s reliance on diesel in key industries leaves the economy particularly exposed.
Australia’s reliance on diesel in key industries leaves the economy particularly exposed. Australians could face diesel prices above $4 a litre and potential fuel rationing within weeks if US President Donald Trump moves ahead with a ban on fuel exports.
The warning comes as Australia scrambles to protect its fuel supply, with the prospect of a US export ban threatening to push prices higher and intensify competition for diesel around the world. Know the news with the 7NEWS app:While Australia does not directly import diesel from the US, the country is heavily reliant on overseas supplies and is the world’s largest importer of diesel.
MST Marquee’s head of energy research Saul Kavonic described the potential ban as “probably the most worrying development we have seen in global fuel markets since the war began when it comes to Australia’s vulnerability”. Australia’s reliance on diesel in key industries, including agriculture and mining, leaves the economy particularly exposed to any disruption to supply.
Energy finance analyst Kevin Morrison told Sunrise on Wednesday that a US export ban would intensify competition for diesel among major importing nations, putting further pressure on Australian prices.
“Even though Australia doesn’t directly import diesel from America, Australia is the biggest, the world’s largest importer of diesel. And the US is the world’s largest exporter,” Morrison said.
“So if the US does decide to stop exporting its diesel, it’s going to impact all those diesel buyers. “We’re going to be in greater competition with the likes of Brazil, China, Turkey, and the EU. ” Morrison said Europe would also be significantly affected, with about half of its diesel imports coming from the US.
Middle East oil supplies offer some hope There are some signs of relief, with preliminary data suggesting oil exports from the Middle East have recovered to about 80 per cent of pre-war levels in September. Morrison said the increase was the highest monthly level recorded since the conflict began at the end of February. He said oil had been flowing from Saudi Arabia and Iran, suggesting an “unofficial truce” may be allowing more shipments to move through the region.
“While they’re sort of still talking about being hostile to each other, I think they also need the income that they’re going to get from oil sales,” he said. Despite the improvement in Middle East exports, Morrison warned there were still several factors weighing on global fuel markets, including the ongoing conflict between Russia and Ukraine. He said Russian exports had been affected by damage to refinery capacity caused by Ukrainian drone attacks.
The prospect of a US export ban still remains a major concern for Australia, with analysts warning that any further disruption could put additional pressure on prices and fuel availability in the weeks ahead.
Business Energy News Sunrise On The Show
Australia Latest News, Australia Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
Anti-consorting laws rejected by ACT amid fears it's a bikie 'safe haven'The ACT government says it will remain the only jurisdiction without anti-consorting legislation, despite warnings weaker laws are making the territory a 'safe haven' for outlaw motorcycle gangs.
Read more »
Fears for Melbourne man who vanished on Cambodia tripAn Australian human rights defender who met with Vietnamese activists has been missing in Cambodia for 10 days as his wife pleads for his safe return.
Read more »
PE firm Straight Bat brings in independent chairs after investor fearsIt comes as the firm’s founder said it “will take multiple quarters to meet existing redemption requests” as the fund chases greater liquidity.
Read more »
AI Stocks Swing Wildly as Wall Street Sentiment Shifts From Safety Fears to Muse OptimismWall Street swung between fears of an AI development slowdown and excitement over Meta's Muse assistant, sending hundreds of billions of dollars out of and back into AI-exposed stocks in two weeks.
Read more »