|
Post by nomad943 on Mar 8, 2008 11:41:32 GMT -6
I wish I could find the updated charts but these rae the most recent I can come up with. www.mees.com/postedarticles/oped/image006.gifwww.mees.com/postedarticles/oped/image004.gifPick your favorite currency from the Euro to the Thai Baht, all charts look the same. People are expressing doubt that the recent runaway spike in energy cost that we are seeing is a direct expression of the dollars collapse? Are you kidding? When accounting for exchange rates it is evident that the only people suffering the severe price shock we are seeing are those using US dollars to conduct their daily business , ie .. Americans. There is no fundamental shift in the supply demand equation. Supply is adequate as is evidenced by the continued showing of inventories well within historic norm bands. OPEC has no need to change production levels, they are adequate. Why scapegoat them yet again? Drink the kool aid much? The problem is currency erosion. The rest of these supposed rationales are smoke and mirrors aimed at disguising the truth. Repeat them at your peril.
|
|
|
Post by graybeard on Mar 8, 2008 19:39:44 GMT -6
At the end of 2000, it took abour 5 ounces of silver to buy a barrel of oil.
It still does.
At the end of 2000, an ounce of gold would buy about 10 barrels of oil.
It still does.
|
|
|
Post by nomad943 on Mar 9, 2008 7:56:36 GMT -6
Lookie ... someone thought to ask one of the three stooges ..
|
|
|
Post by redwolf on Mar 11, 2008 10:33:08 GMT -6
I believe oil prices spiked way before the exchange rate dropped. I know the exchange rate affects oil prices, but there are other factors affecting the market. I think the biggest factor right now is the trend toward investing in commodities in a recessionary economy.
|
|
|
Post by redwolf on Mar 12, 2008 12:53:24 GMT -6
Oil crosses record $110, despite supply riseBy David Goldman, CNNMoney.com staff writer money.cnn.com/2008/03/12/markets/oil_eia/index.htm?cnn=yesFrom the story: Rising prices in spite of supply and demand. Typically, an increase in supply and low demand would result in much lower crude prices. But crude and gas prices continue to rise.
"This is all driven by speculation," said Schork, who believes that investors have poured money into the commodity to make some interest in a slumping economy. "That's why we've seen a jump from 20,000 to 90,000 contracts this month."
About an hour after the government report's release, oil rebounded to around the level of Tuesday's settle as investors continued to pour money into commodities.
"This market is not about supply and demand, it's about the dollar," said Alaron senior analyst Phil Flynn. "The dollar is weaker and investors are buying anything they can get their hands on."
|
|