Afternoon Coffee: Oil Prices Rise Due to Higher Demand, Supply Issue Pushes Up Gas Prices in Midwest

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Oil prices rose today after the International Energy Agency released its monthly report that showed oil demand is increasing at its fastest rate in 5 years. Crude futures on the New York Mercantile Exchange rose 75 cents to $43.83 a barrel and Brent crude in London rose 56 cents to $49.74 a barrel.

Due to mechanical problems at a BP refinery in Whiting, Indiana, the Chicago region is likely to experience a jump of 50 cents to $1 in gas prices. The refinery specifically had one of its crude distillation units go down. The unit is responsible for more than half of the refinery’s daily capacity.

A new report from Wells Fargo says when companies expand around the globe, it actually hurts the global economy. The report said the global supply chain reached its apex a few years ago but the global exports-to-GDP ratio has stalled in the last 3 years.

GlaxoSmithKline had to shut down one its most important manufacturing plants after the bacteria that causes Legionnaire’s disease was found in the cooling tower of the North Carolina factory. The company does not expect any product shortages to occur as a result of the closing.

 

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