Real Oil Price Over $100 for 4th Month
In real dollars, the price of oil averaged $100.54 in October 2013. This is the fourth month in a row that the real price of oil has averaged more than $100.00. The real price of oil was 11.2% higher than the real price of oil in October 2012. This is the fifth straight month of double digit month-over-month growth in the price of oil. The annual rate of change has contracted at a slower rate each of the last six months. If the price of oil stays flat in November, then we will see the annual rate of change start growing in November and the following few months at least.
Real consumer spending is a good leading indicator for the real oil price. Real consumer spending has been growing at a relatively constant rate since 2012. This is likely to lead to stronger growth in oil prices in the short term. This is positive sign oil, gas field, and mining machinery production.
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