Escalating tensions in the Middle East are pushing the pri
ce of oil up to the highest levels seen since 2008.
Fighting between pro and anti government protestors in Libya have caused oil to climb above US $116 a barrel, which was worsened by rising tensions in other Middle Eastern countries.
AA Senior Analyst Mark Stockdale says New Zealand consumers shouldn’t be surprised by further rises in petrol and diesel prices here, as oil companies are still absorbing some of the cost.
“These events like the Middle Eastern crisis or the northern hemisphere winter, which saw a spike in demand for heating fuel, or hurricane season which closes refineries, these things lead to price spikes, which we’re seeing now.”
Mr Stockdale says the global supply and demand situation means oil prices will become increasingly volatile in the future.
“People need to be aware that the trend is for fuel prices to rise over time.
"That’s because demand around the world is increasing slowly, and it’s not being met by an increase in supply.”
Several analysts are warning we could see fuel prices lift above 2008’s record levels if the political unrest continues.
