Business news with words department+prices+surged. 13 news.

OIL prices jumped in light trading yesterday after the government reported that consumer spending surged last month, raising hopes that the US economy will weather the crisis roiling credit markets and that demand for oil and gasoline will strengthen. The Commerce Department said consumer spending jumped 1.1 percent in November, the biggest one-month gain since 2004 and well above analyst expectations for an 0.7 percent increase. Light, sweet crude for February delivery rose US$2.25 to settle at US$93.31 a barrel on the New York Mercantile Exchange. Oil prices were also supported by stocks, which rose yesterday, and a slightly weaker dollar. Energy investors often view stock market moves as reflective of overall economic sentiment. Also, oil futures offer a hedge against a weak dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the greenback is falling. Many observers blame oil's rise last month to near US$100 on speculators

Wheat prices surged above $10 a bushel for the first time Monday amid concerns that strong demand globally could result in a grain shortage in the United States next year -- worsening food price inflation. Wheat supplies in the U.S. have dwindled this year as one wheat crop after another around the world has been damaged by poor weather, most recently in Australia and Argentina. That's sent buyers scrambling for stockpiles at any cost. U.S. wheat exporters already have sold more than 90 percent of the 1.175 billion bushels the U.S. Department of Agriculture expects will be exported during the whole marketing year, which ends in June 2008. Kansas wheat producers likely won't benefit much from the spike, as most of last year's crop has already been sold, said Marsha Boswell, a spokeswoman for Kansas Wheat. "Last year during harvest, we had flooding and also freeze damage in April, so there was a lot of wheat we were not able to harvest," she said. "So there's not a lot of wheat left in the state to be sold at that price right now." However, the higher bushel price is good news for farmers looking ahead to futures pricing for next year's harvest.

Higher gas prices sent U.S. consumer inflation in November to its biggest jump since September 2005, the U.S. Labour Department said Friday.

Reuters - Producer prices surged 3.2 percent in November, the biggest rise in 34 years, on a record rise in gasoline prices, the Labor Department said on Thursday.

WASHINGTON (Reuters) - Producer prices surged 3.2 percent in November, the biggest rise in 34 years, on a record rise in gasoline prices, the Labor Department said on Thursday.

Gasoline could soon top $3.50 a gallon in California, but a large swath of the economy is affected as well. Nationwide fuel costs surged again in the last week, the Energy Department said Tuesday, pushing prices higher than they've ever been at this time of year.

CRUDE oil prices shot higher and then retreated yesterday, reaching a new record of US$96 a barrel before concerns about the US economy and France's decision to release oil from its strategic petroleum reserve motivated investors to cash in some of their recent gains. The Commerce Department's report that consumer spending rose by 0.3 percent in September, less than the 0.4 percent increase analysts expected, raised the prospect of a slowing economy that could depress demand for oil. And downbeat news about manufacturing came from the Institute for Supply Management, which said industrial activity grew in October at the weakest pace since March. Still, oil prices have surged 20 percent in one month, and when any market rises that far that fast, investors tend to sell to lock in some of their gains. The Federal Reserve's decision to cut interest rates a quarter-percentage point on Wednesday got a mixed reception in the oil market but probably contributed to some of Thursday's

OIL prices surged as high as US$86 a barrel yesterday for the first time after OPEC said crude production by non-member countries is likely falling even as global demand for oil is rising. Prices were also supported by concerns that Turkish forces will pursue Kurdish rebels into Iraq, disrupting oil supplies, and by technical buying by investment funds. Despite the Organization of Petroleum Exporting Countries' decision last month to boost its production by 500,000 barrels per day beginning next month, the rest of the world will likely produce 110,000 fewer barrels of oil per day than expected in the fourth quarter, OPEC said in a report. At the same time, fourth quarter demand for crude oil will grow by 100,000 barrels a day over last year, OPEC said. The estimates add to sentiment that crude supplies are tight. Last week, the Energy Department reported that domestic crude inventories fell during the week ended October 5 when they had been expected to rise. And the

WASHINGTON (MarketWatch) - Wholesale prices surged 1.1% in September, led by rising energy and food prices, the Labor Department reported Friday. This is the largest increase since February. Energy prices jumped 4.1% in September, the biggest increase since last November. Food prices rose 1.5%. Excluding volatile food and energy, however, the core producer price index rose a less-than-expected 0.1% on lower car prices. Economists expected the PPI to rise 0.4% and the core to rise 0.2%.

OIL futures surged yesterday in a late rally driven by news that workers at Chevron Corp. facilities in Nigeria had staged a surprise strike and by a report that demand for gasoline is up. Nigeria is Africa's biggest oil producer and one of the top overseas suppliers to the United States. Oil prices often rise when Nigerian oil supplies are threatened. "Employees of some of the companies providing labor workforce to Chevron, and belonging to the National Union of Petroleum and Natural Gas Workers ... initiated (a) strike" at six facilities, Chevron said in a statement. Chevron said production was unaffected. It was unclear how long the strike might last. Nigerian oil workers have a history of striking frequently, but returning to work quickly. Prices were also supported by a MasterCard Advisors LLC report that concluded gasoline demand rose 1.3 percentage points last week compared to the same week last year. Light, sweet crude for November delivery rose US$1.04 to settle at US$81.30 a barrel on the New York Mercantile Exchange. November gasoline rose 1.34 US cents to settle at US$2.0336 a gallon while Nymex heating oil rose 3.19 US cents to settle at US$2.2172 a gallon. November natural gas rose 14.7 US cents to settle at US$7.01 per 1,000 cubic feet on expectations that this winter will be colder than last. In London, November Brent crude rose US$1.11 to settle at US$78.60 a barrel on the ICE Futures exchange. The news from Nigeria and MasterCard interrupted what had been a sleepy day in the Nymex energy futures pits. With little news driving prices earlier in the day, futures had alternated between gains and losses as traders debated whether Thursday's inventory report from the Energy Department's Energy Information Administration will show an increase in crude stockpiles. The report will be released a day later than normal due to Monday's Columbus Day holiday. "The market was starving for some news," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago. Analysts surveyed by Dow Jones Newswires predict, on average, that crude oil inventories rose 1 million barrels during the week ended Oct. 5, while refinery use fell 0.1 percentage point to 87.4 percent of capacity. Gasoline inventories fell by 300,000 barrels last week, the analysts predict, while distillates, which include heating oil and diesel fuel, likely declined 600,000 barrels. However, a consensus is far from clear, with some

ENERGY futures fell yesterday as traders expecting a weakening of demand in the coming months cashed in profits from the previous session's rally. While an encouraging employment report suggested the economy is weathering the problems affecting the subprime mortgage industry, many energy traders and analysts question whether demand for oil and petroleum products will be strong enough in the fourth quarter to support US$80 a barrel oil. Others argue that demand for oil will increase as home heating season progresses. While crude inventories have risen for two straight weeks, supplies of gasoline and distillates including heating oil fell last week. Investors betting demand will tighten in the fourth quarter drove oil prices US$1.50 higher on Thursday. Yesterday, light, sweet crude for November delivery fell 22 cents to settle at US$81.22 a barrel on the New York Mercantile Exchange. Futures ended the week down 44 cents a barrel, or 0.5 percent. Trading yesterday was volatile, with prices alternately rallying and falling. "There's profit-taking going on after yesterday's rally," said Addison Armstrong, an analyst with TFS Energy Futures LLC in Stamford, Connecticut. The quick resolution of many of Thursday's West Coast refinery outages also pressured prices yesterday. November gasoline fell 0.29 cent to settle at US$2.0493 a gallon on the Nymex, ending the week down 1.9 cents, or 0.9 percent. Heating oil futures fell 0.78 cent to settle at US$2.2235 a gallon. Both contracts surged more than 5 cents on Thursday. Natural gas for November delivery fell 33.9 cents to settle at US$7.073 per 1,000 cubic feet. Forecasters see little chance that a series of storms strung from the Gulf of Mexico to the central Atlantic will develop into tropical storms that could threaten critical gas and oil infrastructure. In London, November Brent crude fell 7 cents to settle at US$78.90 a barrel on the ICE Futures exchange. Oil prices have been volatile in recent days as investors have battled over whether demand will grow or weaken in the fourth quarter. "It's a stalemate right now," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago. "People really don't know what the next move will be." Energy Department data suggests demand for gasoline is falling, and many analysts think that's a function of this year's record gas prices. But others argue that falling refinery activity and heating oil inventories sugg

Wheat, corn and soybean prices surged Thursday after the Agriculture Department said U.S. exports are well ahead of the average pace for this time of year — a reflection of strong worldwide demand and tight supplies.

The world is hungry for information, as well as grain THE long cycles of agriculture are seldom associated with gripping suspense. But on September 12th farmers, grain traders and investment managers around the world will be awaiting news that is generating greater excitement the higher grain prices rise. The monthly report of America's Department of Agriculture (USDA) is so sensitive that department staff go into what they call a "lockup" period for days in advance, often working all night just before its release. Prices of global wheat futures hit records during the first week in September, about double what they were a year ago. Corn (maize) prices have also surged. Consumers are already paying higher prices, forking out more money for products ranging from bread to noodles--although the cost of something in the shops has many components in addition to the price of a commodity. Wheat, for instance, accounts for only about 5% of the cost of an average loaf of bread. But although a jumble of subsidies clouds the precise picture, a long period of higher food prices is beginning to show up in inflation numbers around the world.