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12753
Lower prices on crude oil
statistikk
1999-11-10T10:00:00.000Z
Prices and price indices;National accounts and business cycles;Energy and manufacturing
en
ppi, Producer price index, price trends, inflation, domestic market, export market, economic indicator, intermediate goods, energy goods, consumables, capital goods, metal-working industry, food industry, oil refining, machine industry, mining, metal prices (for example gold, aluminium, copper)Producer and wholesale price indices, Energy , Oil and gas , Business cycles , Manufacturing, mining and quarrying , National accounts and business cycles, Prices and price indices, Energy and manufacturing
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Producer price index, 15 October 1999

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Lower prices on crude oil

Reduced prices of oil due to OPEC's inability to maintain cutbacks counteracted the increase of manufacturing prices - causing the total index to even out at the same level as last month's. The 12-month rate rose from 4.5 to 4.7 per cent.

For the first time since OPEC's cutbacks took effect in March the organization increased it's production. In business circles there seems to be doubt whether or not OPEC will extend the cutbacks beyond March of next year. The average price of Brent Blend in October was 22 USD. This is a 1.7 per cent reduction compared with last month's price. Estimated in Norwegian Krones the drop is 3.1 per cent. Nevertheless, compared with October of last year, the increase was 76 per cent. The reduction of oil prices causes a fall in the group index for oil extraction and quarrying. A somewhat steeper fall last year pushed the 12-month rate in this group up from 31.3 per cent to 33.3 per cent.

Rise in manufacturing prices

The main contributor to the rise is the group manufacture of chemicals and chemical petroleum, coal, rubber and plastic products. This group experienced an increase of 1.0 per cent compared with last month. Fuel oils had the greatest influence with an increase of 9.0 per cent according to the London Spot Markets.

The increase in manufacturing prices was somewhat reduced due to a 0.4 per cent decline in the group manufacture of food, beverages and tobacco. The main reasons for this were reduced prices of fodder, coffee and mutton.

The metal index fell by 0.2 per cent. Nevertheless, historically low prices of metals last year caused the 12-month rate to climb from 1.6 percent last month to 2.9 per cent in October. Less demand for metal in 1998 made prices reach record low levels on the international commodity exchanges. The fall in the metal index from September to October is mainly due to a large supply of magnesium from China causing reduced market prices of this metal.

In total the manufacturing prices climbed 0.2 per cent compared with last month. The 12-month rate remained the same.

Producer price index. 1981=100
  October 1999 Changes, per cent
  September 1999-October 1999 October 1998-October 1999 January-October 1998-January-October 1999
Total index 170,3 - 4,7 2,4
Oil extraction, mining and quarrying 114,2 -1,0 33,3 14,2
Manufacturing 176,5 0,2 2,3 1,5
Manufacture of food, beverages and tobacco 202,4 -0,4 -0,3 1,4
Manufacture of textiles, wearing apparel, leather and leather products 158,9 -0,1 0,6 1,0
Manufacture of wood and wood products 188,3 0,9 0,9 -0,3
Manufacture of paper and paper products, printing and publishing 203,5 0,5 3,0 2,7
Manufacture of chemicals and chemical petroleum, coal, rubber and plastic products 136,3 1,0 9,7 3,2
Manufacture of mineral products 215,4 - 1,7 1,9
Manufacture of basic metals 138,0 -0,2 2,9 -1,2
Manufacture of fabricated metal products, machinery and equipment 189,3 - 1,3 1,7