• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 1 hour Satellite Moons to Replace Streetlamps?!
  • 17 hours US top CEO's are spending their own money on the midterm elections
  • 2 hours EU to Splash Billions on Battery Factories
  • 3 hours U.S. Shale Oil Debt: Deep the Denial
  • 3 hours The Balkans Are Coming Apart at the Seams Again
  • 19 hours OPEC Is Struggling To Deliver On Increased Output Pledge
  • 3 hours The Dirt on Clean Electric Cars
  • 1 day Petrol versus EV
  • 14 hours Uber IPO Proposals Value Company at $120 Billion
  • 17 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 5 hours 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 20 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 21 hours 10 Incredible Facts about U.S. LNG
Alt Text

Oil Prices Under Pressure As U.S. Shale Supply Soars

Continued production growth in the…

Alt Text

Oil Markets Tremble As Chinese Stocks Crash

The steep plunge in Chinese…

Alt Text

Move Aside Lithium – Vanadium Is The New Super-Metal

Lithium took investors across the…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Dollar Strength Is Likely To Cap Oil Price Gains

Tanker

This morning, my old stomping ground of forex is making a rare appearance in the news. The problems in Turkey and the actions of the Erdogan regime caused the dollar index to spike overnight, which in turn drew attention to dollar strength that has been building for some time. Very few have been talking about it to this point, but the fact that the U.S. currency is at levels not seen for over a year is now becoming a subject of interest. That is probably overdue, but does it really mean anything for energy investors, or more specifically for the price of oil?

“The strength of the dollar influences the price of oil” is a sentence that to my mind should be an obvious statement of fact, yet a lot of people doubt it these days. The doubters, however get it wrong on two fronts.

First, they tend to misinterpret the statement above. I do not maintain that dollar strength is the only influence on the price of oil, nor even that it is the biggest, simply that it is one. Pointing to the lack of inverse correlation between the charts below, as those doubters often do, is therefore irrelevant. At different times, different things become the major influence on oil. It could be growth projections and their potential effect on demand, or OPEC squabbles and their potential effect on supply, for example. In reality of course, all those factors, and a whole host of others, are always simultaneously affecting price. When I say that “The strength of the dollar influences…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News