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Speaker 1: Good news. If you're looking at the price of petrol

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Speaker 1: and you're thinking you might fill up your car sometime soon, well,

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Speaker 1: the price of oil should be coming down shortly. The

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Speaker 1: price of Brent crude has been trending down over the

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Speaker 1: past week, and it may still have some way to go.

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Speaker 1: Liam dan Is, The Herald's Business editor at large. Kida, Hi, Jack,

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Speaker 1: So where's the price at now?

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Speaker 2: Well, it's still sitting about seventy eight something for a

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Speaker 2: barrel of Brent crude if that's what you feel like

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Speaker 2: getting for yourself US seventy eight. That's good news for motorists,

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Speaker 2: right because it's below eighty And we saw it slump

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Speaker 2: about six or seven percent at the weekend, so you

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Speaker 2: know that was to do with weird stuff like OPEK

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Speaker 2: trying to sort of consolidate its production cuts and then

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Speaker 2: not impressing the markets with how heavily they consolidated them.

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Speaker 2: So you'd think it would go up, but it didn't.

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Speaker 3: It went down.

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Speaker 2: And there there's some numbers out of the US on

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Speaker 2: US production that was strong. But oil has been coming

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Speaker 2: off since the start of the quarter, which is also

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Speaker 2: kind of good news on the inflation fight. You know,

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Speaker 2: they need to go into it all. But obviously oil

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Speaker 2: flows for everything.

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Speaker 3: Still.

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Speaker 2: You know, we want to see renewable energy and all

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Speaker 2: that stuff, but actually, you know, everything in the economy

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Speaker 2: is underpinned by the price of oil, transporting all your

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Speaker 2: goods and manufacturing of plastics.

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Speaker 3: And all that stuff.

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Speaker 2: So that's quite quite good news on maybe what we'd call.

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Speaker 3: The tradable side of inflation.

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Speaker 2: I know the Reserve Bank can't get excited about that

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Speaker 2: yet because a could move back up and be there

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Speaker 2: focused on the non tradable bit, the bit of New Zealand,

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Speaker 2: you know, the wages and assurance prices and all that

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Speaker 2: sort of.

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Speaker 1: Stuff, rates and that sort of thing. Yeah, right, So

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Speaker 1: how fast should we expect the fuel companies to pass

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Speaker 1: on any savings?

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Speaker 2: If they do, I think, I look, this is me

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Speaker 2: putting the acid on the look. Yes, I think that

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Speaker 2: we should see the pump price continue to fall a

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Speaker 2: bit through the next week. It takes a while to

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Speaker 2: flow through, but not not that long. I mean, it's

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Speaker 2: pretty immediate commodity price then compared to something like dairy

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Speaker 2: price is where it can take months for it to

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Speaker 2: go from the what we see in the Fonterra auction

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Speaker 2: thing through through your block of cheese. Petrol transmits pretty quickly.

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Speaker 2: The New Zealand dollar has been a bit stronger four

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Speaker 2: percent up I think in the past month, if I'm

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Speaker 2: remembering the ben z ed note correctly, and I look

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Speaker 2: at that the website, gaspy and you know, so we're

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Speaker 2: oil prices off for around fourteen percent since the start

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Speaker 2: of the quarter. Two months we've seen that so far

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Speaker 2: according to Gas by the you know, in the last

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Speaker 2: month unleaded ninety ones down about.

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Speaker 3: Six and a half percent. So that's not bad.

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Speaker 2: That's a reasonable pass through, but it doesn't shouldn't have

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Speaker 2: captured yet what we saw at the weekend. So that's

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Speaker 2: you know, maybe a suggestion that you haven't filled up yet.

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Speaker 2: Wait a couple of days. Hopefully it's a bit better.

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Speaker 1: A bit better. Is it? Gaspy?

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Speaker 3: Gaspy as well? Looking I always thought it.

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Speaker 1: Was gas spy could be because it not gaspy. I've

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Speaker 1: been saying gas by all these years. I've saying again,

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Speaker 1: one of us is going to be right, one of us.

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Speaker 1: There's nothing else right your gas.

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Speaker 3: Yeah, yeah, I mean, look I look at the website. Yeah, gaspy, Yeah,

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Speaker 3: I mean it is about gas, isn't it? You're probably sure?

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Speaker 1: Yeah, No, well, I'm usually wrong with these things.

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Speaker 2: It's a good pun play on words, which is totally

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Speaker 2: by Okay, if.

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Speaker 1: You know, please let us know. Is it gasp be

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Speaker 1: your gas? By ninety two ninety two? There's some yeah,

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Speaker 1: I mean if indeed we do see a bit of

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Speaker 1: a fall at the pump, I mean right across the board.

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Speaker 1: Given you know that, as you said, oil passes through everything,

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Speaker 1: this is ultimately going to be a little bit of

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Speaker 1: good news in that fight for inflation. But it's the

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Speaker 1: non tradables of the domestic stuff that's still kind of sticky.

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Speaker 3: Yeah, you can into the weeds on that stuff.

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Speaker 2: They do.

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Speaker 3: They do sort of cross pollinate a bit.

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Speaker 1: But you know, oil price doesn't hit rents, for example,

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Speaker 1: It doesn't necessarily hit.

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Speaker 2: Rates for it, No, I mean, it's an influence when

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Speaker 2: it's spiked up above. I think I got to one

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Speaker 2: hundred and twenty something US stoll as a barrel in

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Speaker 2: twenty twenty two. It obviously was one of the sparks

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Speaker 2: that you know, drove that really high inflation. You know,

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Speaker 2: the financial the economic purists will tell you it's all

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Speaker 2: money supply. I think it's a bit of a bit

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Speaker 2: of a mixture, but you know that the price we

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Speaker 2: play pay for commodities is very much a real world

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Speaker 2: part of the price that feeds into everything.

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Speaker 3: I appreciate your time, Thank you very much. Liam.

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Speaker 1: That is Liam Dan the NZ Herald to business or

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Speaker 1: at large.

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