In the wake of the COVID-19 pandemic, global oil prices have plummeted.
US oil prices went into negative for the first time ever on Monday — at -$38 a barrel — when oil producers effectively ran out of space to store the supplies of crude oil that have not been used during the pandemic.
Australia must take advantage of this. As a nation dependent upon imported liquid fuel for more than 90 per cent of our refined fuel needs, a glut of cheap oil is a bonanza.
Australia's four oil refiners only produce a small portion of our liquid fuel needs which means the rest has to come from the Middle East and Asia. Singapore currently supplies about 51 per cent of our liquid fuel as it is an important logistics centre for crude oil trade.
Buying up big right now would allow us to significantly improve our stockpile and potentially reach compliance with our obligations, as a member of the International Energy Agency.
