Get ready to pay more at the gas pumps next month, as the price of oil is on the rise today. You can thank a stronger than expected manufacturing activity report for the United States for the the rise in oil price today.
The West Texas Intermediate (WTI) benchmark oil price is up 57 cents to $86.01 in New York as of this morning, while the Brent crude benchmark was up $0.89 to $110.20 in London. The U.S. government reported durable goods manufacturing (think cars, planes, and other big ticket items) rose a whopping 4% in July. We haven’t seen this big of an increase in durable goods manufacturing since March of this year.
In a contradictory move, U.S. oil supplies actually grew more than expected last week, so it’s anyone’s guess why oil prices are actually up. In my economics classes, we were always told that when supply goes up, prices go down. But what do we know (nothing)?
Gasoline prices at the pump remained flat on a national average basis, at $3.575 per gallon.