Posts filed under “Energy”

Producer Price Index April 2008 = 0.2%, 0.4% Core

How was that for odd? The Core Rate was much higher than the headline — 0.4% versus 0.2%.


It has to do with the way seasonal adjustments are calculated — and not, as some have suggested, a drop in energy prices.

Follow this if you will: Each year in the Spring, we get a fairly large seasonal adjustment. If memory serves, its about a ~7% increase in Energy for April. This year, however, energy prices are up so much in advance of April, that we only got a "modest" one month energy increase of 5.2%. In other words, the market ran up in advance of the usual seasonal gains. Hence, a 5.2% increase looks like a reduction after seasonal adjustments. (Note: I need to double check the precise #s).

To get the NSA, we go to the Year over Year data from BLS: "From April 2007 to April 2008, finished goods prices rose 6.5%, finished energy goods index advanced 17.5%, (finished goods less foods and energy increased 3.0%), and the index for finished consumer foods climbed 5.2%.  For the 12 months ended April 2008, prices received by manufacturers of intermediate goods advanced 10.5%, and the crude goods index jumped 34.3%."  The charts below are quite informative as to these year over year gains.

Inflation contained? Hardly . . .


Producer Price Index, April 2008, YoY
Crude, Intermediate, and Finished Goods, April 2008 YoY


charts by Jake


Producer Price Indexes – April 2008   
BLS, May 20, 2008

CPI Seasonal Adjustments

Category: Commodities, Data Analysis, Energy, Inflation

USA National Gas Temperature Map

Category: Consumer Spending, Energy

S&P500 Profits Ex 3 Oil Cos = Awful

Category: Earnings, Energy, Valuation

T. Boone Pickens on Oil Prices, Trading, Wind Power

On Bloomberg (via Paul), comes this  very good video interview with T. Boone Pickens on Oil, Natural Gas, Trading — and Wind Power.


Boone at 2008 Milken Conference
(click for video)


Good stuff.


Boone Pickens Says He Is Ready to Bet on Wind Power
Bloomberg, April 29 2008

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Category: Energy, Video

Oil Bubble?

Category: Commodities, Earnings, Energy, Psychology, Technical Analysis, Valuation

What’s Next for Crude Oil ?

Category: Commodities, Contrary Indicators, Energy, Psychology, Technical Analysis

Oil = $124

Category: Commodities, Energy

Category: Commodities, Energy, Technical Analysis, Trading

Ask Your Doctor About GASTAXADROPPIN

Category: Commodities, Consumer Spending, Energy, Politics

Oil > $120

Category: Energy, Markets, Technical Analysis