Oil price hits six-month high of $83.45

The price of oil has hit a six-month high after encouraging manufacturing data in the US and China boosted confidence in the global recovery. US light crude oil rose by $2 (£1.25) a barrel or 2.5%, to $83.45, while London Brent rose by $1.90 to $85.04 a barrel. Figures showed that the US manufacturing sector accelerated faster than expected in October, thanks to strong new orders and exports.

Remember when GWB was POTUS, and we heard from every major newspaper whenever there was any raise in the price of oil?

Gee, wonder why now we have to hear it from an overseas news source. Wonder what changed? hmmmmm... /s

” after encouraging manufacturing data in the US and China boosted confidence in the global recovery. “

An OT question —

How do Financial Journalists/Analysts come up with their ‘reasons’ for these things?? Do they run around asking investors “Why are you doing this?” - or are they just making up these things out of whole cloth because they ‘sound good’??

Enquiring (but otherwise idle) minds want to know... ;)

Yet, the Fed keeps ignoring that big increases in food and energy are most often barometers of inflation that IS getting built-in to everything else - all items in the CPI outside of energy and food - because of how one or both are components of so many other things in the economy.

From the PDF - "Consumer Price Index Detailed Report, (complete text and tables), September 2010" at: http://www.bls.gov/cpi/#tables

"The food index rose 0.3 percent in September after a 0.2 percent increase in August."

"The energy index rose 0.7 percent in September after a 2.3 percent increase in August."

"The index for all items less food and energy was unchanged in September, as it was in August."

Right now manufacturers, distributors and wholesalers, as well as retailers are trimming profit margins as much as they can, when they can. But, as soon as the economy starts to right itself the demand side of supply-and-demand will start to demonstrate the inflation that is already building in everything.

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