The news is full of stories about falling oil prices. While energy is a key component of the economy, high and low prices simply switch economic incentives.The news is full of stories about falling oil prices. According to various wire and news reports:
American motorists are saving $630 million on gasoline compared with what they paid at June prices, and they would receive a $230 billion windfall if prices were to stay this low for a year. – Washington Post Oil prices in North Dakota are below $50 – Bloomberg (This, we note, is tight light oil for which there is limited refining capacity. It is trading at a discount to West Texas Intermediate crude, which itself trades at a discount to the international standard, Brent Sea crude.) Oil...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
