Disposable personal income (DPI) and personal consumption expenditures (PCE) increased in December, the Bureau of Economic Analysis reports. The update marks the sixth straight monthly rise in PCE and the third consecutive gain for DPI. In other words, if you’re looking for a reason to doubt the revival in consumer spending of late, you won’t find it here.

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Oil price nears $100 on Egypt crisis
AFP/Jan 31
World oil prices rose to within a whisker of $100 a barrel Monday on fears that violent unrest in Egypt could disrupt the flow of oil through the Suez Canal on its way to the West, analysts said. Brent North Sea crude for delivery in March struck $99.97 a barrel in Asian deals. Crude last hit $100 dollars in October, 2008. In later London trade, it pulled back to stand at $99.20, down 22 cents compared with the close on Friday.
Oil Prices Rise as Egypt Unrest Gooses Market
CNBC/Jan 30
There is no immediate threat to oil supplies at this time. The Suez Canal and Sumed Pipeline — which combined carry over 2 million barrels of oil a day — are operating normally right now. Egyptian oil output currently stands at under 700,000 barrels a day. Even combined with production in other areas where there have been protests — Tunisia, Yemen, and Jordan — their total output is about one-tenth that of Saudi Arabia, the region’s top oil producer. OPEC has plenty of spare capacity (about 5.8 million barrels a day) — and the International Energy Agency could even consider releasing strategic reserves if needed — to meet a supply disruption. But a disruption in supply may not be the major catalyst for a big move in the price of oil. The main risk is not actual disruption of oil flows from Egypt, says Lawrence Eagles, head of commodity research at J.P Morgan. “It’s the potential for these events to act as a catalyst to unrest in countries that are otherwise seen as stable,” Eagles says. Uncertainty about the spread of the unrest could send oil prices significantly higher early this week.

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