Oil driving inflation

"No inflation in sight"...
Famous last words by the Fed chairmen past and present
Oil is generally conversely related to stock prices so when oil rises stocks usually fall (S&P, NASDAQ, and NYSE). The current over-supply of mid-East crude will get sucked up in a few months and oil prices will rise accordingly based on simple demand/supply.

When the supply dwindles due to crises or OPEC not increasing supply (or both) then the prices will go up and eventually OPEC will start producing more because over $100 oil makes them lots of money. Actually OPEC has been upping their production steadily since oil went over $90/barrel.

In turn the higher prices not only affect pump prices but food prices and transportation prices. These price hikes affect many other production costs including energy production costs. The costs of all these price hikes are then passed on to you and me as consumers through higher prices at the pump and on the store shelves.

Chart of Inflation index








Crude Pricing


Energy Prices