Oil Market Fundamentals - Impact of Weak Dollar

 |  Includes: OIL, USO
by: Mark J. Perry

Click to enlarge

The chart above (data available here from Net Oil Exports blog) shows Net Oil Exports of the top 20 oil exporters, representing 93% of total world exports, versus the world price of oil, from January 2001 to April 2008 (for oil exports) and May 2008 (for oil prices).

The story seems clear: Net oil exports peaked during the 2004-2006 period, and they have been declining in 2007-2008. In the face of rising global demand, oil prices have been increasing. Of course, there are the effects of the falling USD and speculators, but the chart below looks basically the same when oil is priced in euros.