The Wall Street Journal (subscription required) reports that producer prices launched upward at a 1.2% monthly rate in July. The rise in the PPI -- which was 0.7 percentage points faster than the 0.5% rate economists expected -- was the result of rising wholesale prices for energy spreading to "automobiles, prescription drugs and capital equipment."

Since the price of oil has dropped 24% from $147 to $112, should we all be relieved that July's number is a temporary blip? Let's hope so, because if not, rising wholesale prices make it even harder for businesses to make a profit when consumer demand is weak.

These higher wholesale prices mean that businesses have two options to maintain profits: keep prices the same but cut costs in other areas by finding productivity improvements, cutting back on payrolls and salaries and the likes, or raise prices to offset those rising costs.

To me, it was inevitable that PetroChina ADR (NYSE: PTR) would become one the largest companies in the world, so I am not surprised by news that it has surpassed General Electric (NYSE: GE) to become the world's second largest company. It now stands behind only Exxon Mobile (NYSE: XOM), and has a much faster growth rate.

I have been shouting about this stock to anyone who would listen since I started writing for BloggingStocks, and hopefully a few have taken notice and earned some money with me. While GE has made some modest gains this year moving almost in lockstep with the indices, PetroChina is up almost 70% and has been paying a generous dividend the entire time. PTR reached a value of $434 billion riding the news of $85-a-barrel oil while GE is hanging tough around $413 billion on a down day in the market.

My original thesis when PTR was at $44 a share, paying about a 5.5% dividend yield and carrying a trailing P/E of 9.5, was that this stock was having a fire sale. Since that time, the stock has simply been on fire. I liked this stock because I felt that few things come close to the certainty of the sun rising in the morning, but the Chinese consuming more oil tomorrow than they did yesterday was one of them. The last time I recommended the stock, it was trading at $142.12 last December when I suggested investors add it to their watch lists for an opportunity to acquire it. That opportunity came as it dipped as low as $108.18.