The 2020 Mid-Year Economic Update_long

Oil Prices Strain Manufacturing Sector

In a new Manufacturers Alliance/MAPI report, The Future of Oil: Are We There Yet?", the author says oil price spikes have "created headwinds for the manufacturing sector."
 
Among other things, the new report covers the impact on manufacturing costs:
 
"In 2002, the manufacturing sector spent $1.7 billion for residual and distillate fossil fuel," the author writes. "Assuming the price of oil holds steady at its May 2008 level for the remainder of 2008, manufacturers will spend approximately $7.4 billion for residual and distillate fuel oil for all of 2008. Some of the increase reflects larger output, but by far most of the increase in spending (96%) is attributable to the four-fold increase in the average refiner acquisition cost of oil since ...

In a new Manufacturers Alliance/MAPI report, The Future of Oil: Are We There Yet?”, the author says oil price spikes have “created headwinds for the manufacturing sector.”
 
Among other things, the new report covers the impact on manufacturing costs:
 
“In 2002, the manufacturing sector spent $1.7 billion for residual and distillate fossil fuel,” the author writes. “Assuming the price of oil holds steady at its May 2008 level for the remainder of 2008, manufacturers will spend approximately $7.4 billion for residual and distillate fuel oil for all of 2008. Some of the increase reflects larger output, but by far most of the increase in spending (96%) is attributable to the four-fold increase in the average refiner acquisition cost of oil since 2002.”
 
The report is found here.

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