Crude's New High a Result of Dollar Weakness

Oil closed at a record high yesterday even after news came out that OPEC would increase output. Part of the reason for oil's rise is based on the fact that it is priced in dollars which are falling. So even if global demand is unchanged, the falling dollar results in a higher price.

When priced in Euros, oil is still 8% off its record high of 60.91 set on April 21, 2006.

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Comments

[erniem]

No doubt the weak and weakening dollar has affected the price of crude.

2007 Sep 12 10:16 AM