Rising oil prices have historically preceded high inflation. Is there a strong relationship between the oil price and inflation?
Rising oil prices often bring dire headlines warning investors about the looming threat of inflation. But is there a causal relationship between the oil price and inflation?
Inflation devalues currencies and results in higher prices for consumer goods and services. In turn, the larger cost of living for consumers can negatively impact discretionary spending and economic growth.
Historically, higher oil prices have statistically correlated with inflation. As prices for oil go up, so do prices for goods that are dependent upon oil. For example, costs may increase for goods made from petroleum-based products such as plastics, or for goods such as fruits and vegetables that have traditionally been transported to market via gasoline- or diesel-powered trucks and trains.
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MPCA investigating Enbridge Line 3 nontoxic spill - - The Minnesota Pollution Control Agency is investigating a drilling fluid spill that occurred on the Willow River in Aitkin County at one of Enbridge s construction sites for its new Line 3 oil pipeline. Drilling was halted after the nontoxic spill was discovered early July 6 and containment and cleanup activities were started, MPCA spokeswoman Cori Rude-Young said Monday. The MPCA has been in regular communication with the on-site, independent environmental monitors and Enbridge Energy, and we have inspected the site cleanup, she said. The new pipeline will replace the Enbridge s current Line 3, which is deteriorating with age and can now only carry about half of its capacity. It is more than 60% completed. The site where the spill occurre
U.S. stocks were lower after the close on Friday, as losses in the Oil & Gas, Basic Materials and Consumer Services sectors led shares lower.
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The best performers of the session on the Dow Jones Industrial Average were Procter & Gamble Company (NYSE:PG), which rose 0.98% or 1.37 points to trade at 140.53 at the close. Meanwhile, The Travelers Companies Inc (NYSE:TRV) added 0.52% or 0.81 points to end at 156.39 and Amgen Inc (NASDAQ:AMGN) was up 0.51% or 1.27 points to 247.90 in late trade.
The worst performers of the session were Dow Inc (NYSE:DOW), which fell 3.09% or 1.91 points to trade at 60.00 at the close. Chevron Corp (NYSE:CVX) declined 2.65% or 2.68 points to end at 98.62 and Walt Disney Company (NYSE:DIS) was down 2.64% or 4.87 points to 179.28.
Pakistan Braces for U S Withdrawal from Afghanistan through Extra-Regional Partnerships jamestown.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jamestown.org Daily Mail and Mail on Sunday newspapers.
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