• 5 minutes Trump vs. MbS
  • 9 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 15 minutes Can the World Survive without Saudi Oil?
  • 38 mins WTI @ $75.75, headed for $64 - 67
  • 11 hours The Dirt on Clean Electric Cars
  • 1 hour These are the world’s most competitive economies: US No. 1
  • 38 mins The end of "King Coal" in the Wales
  • 17 hours Uber IPO Proposals Value Company at $120 Billion
  • 1 hour Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 7 hours EU to Splash Billions on Battery Factories
  • 8 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 40 mins Coal remains a major source of power in Europe.
  • 21 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 8 hours Poland signs 20-year deal on U.S. LNG supplies
  • 22 hours Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 18 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
Alt Text

Fear Has Driven Oil Prices Too High

The calls for $100 oil…

Alt Text

Goldman Sachs: This Is The Next Big Risk For Oil

Goldman Sachs commodities expert Jeffrey…

Alt Text

Egypt Feels The Squeeze Of Higher Oil Prices

Egypt has just realized one…

Allen Gilmer

Allen Gilmer

Allen writes the popular energy news blog Open Choke

More Info

Trending Discussions

How Much of the Price of Oil is Due to Dollar Weakness?

Our markets seem very sensitive to the price of oil... to the extent that I read articles about how high oil prices are keeping the economy down. That begs the question... is it "high oil prices" or "weak dollar"? Here it is...

Inflation effect on oil prices

This first graph shows the Price of a Barrel of Oil in North American Pesos... er, I mean US Dollars in red, and the Price of a Barrel of Oil in Euros, normalized to US Dollar/Euro exchange one year ago.

Oil price and dollar devaluation

This graph shows the variation in $/Barrel.  In other words, this is the component of the price per barrel of oil due strictly to further devaluation of the dollar relative to the Euro (and, in reality, a whole basket of other currencies).

Barrel of oil

This chart just relates it to the percentage of the price per barrel of oil that can be attributed to dollar devaluation... also known as dollar inflation. Is it any wonder the Chinese are worrying about their trillion dollar holding of dollars? 20% of it has magically disappeared in the last year, at least in regards to buying energy by this Inconvenient Truth.

By. Allen Gilmer


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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