Oil Price Up 11.5% in August 2013

In real dollars, the price of oil averaged $106.57 in August 2013. This is the highest average monthly price of oil since March 2012. The real price of oil was 11.5% higher than the real price of oil in August 2012. This is the third month of in a row of double digit month-over-month growth in the price of oil. That is the first time that has happened since May through June 2011. The annual rate of change has contracted at a slower rate each of the last four months. A relatively constant rate of growth in consumer spending, continued money printing by the Federal Reserve, and geopolitical instability in the Mid East are contributing to the higher price of oil. This is positive sign oil, gas field, and mining machinery production.