Halo Advisory has identified a stark correlation between global oil prices and the rate of corporate insolvency appointments in Australia.
The findings, drawn from ASIC insolvency records, RBA cash rate data, and ABS statistics, suggest that the current volatility in the Middle East could be the “Tipping Point“ for thousands of SMEs already struggling with inflationary pressures.
The report highlights a consistent trend spanning over two decades: as the price of a barrel of oil climbs, business failures follow in a predictable wave.
This analysis identifies that each of the three major oil price surges of the past 25 years—the 2000 spike to $28.50/bbl, the 2006–2008 run to nearly $97/bbl, and the sustained $108–$111/bbl period…