Oil Skyrocketing? No! USD Plummetting!, page 1

I personally find it appalling that the US government is keeping us hoodwinked when it comes to the truth of the price of oil. The price of oil is not increasing as much as we are lead to believe that it is. The value of our national dollar is plummeting like a rock.

This is just a rough graph I put together showing 2 things.

A.) The orange line is the value of the USD vs EURo
B.) The price of a barrel of crude oil in USD

Ron paul knows the truth and he's not afraid to blast the federal reserve chairman:



I wish there was a graph that I could find that would show the historical price of oil in EURo's. Now that would be incriminating!!!

Between the falling Dollar and declining global production......Oil will [be] VERY expensive!

Aside from 'populist' Lone Star Reps like Ron Paul and Henry Gonzalez (1961 - 1998)...congress is a deficit-spending machine.....they can't complain about monetary expansion and the resulting price inflation without condemning themselves...their spending habits, and their failed energy policies. It's not gonna happen. Instead they target the 'specs'...fund managers entering the commodities trade attempting to protect capital against...you guessed it...the falling dollar.

Oil is a globally traded commodity folks. Drive the 'specs' out of the US market...they'll simply take their trade elsewhere.

Russian & Iranian bourses will be waiting with open arms...you betcha!

reply to post by bamaoutlaw

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100 dollars/barrel in january (record high)

135 dollars/barrel in June (record high)

6 months it took for oil prices to increase by 35 percent. Where are the politicians? Where is the reveared alternative energy movement we hear about so much on TV? Politicians made such a huge issue over dependance on foreign oil, but they failed to care about our dependance on oil altogether. Now we're screwed with no alternative but unleaded or super unleaded (god forbid).

Not to mention fuel-oil costs which are projected to be around 10 dollars a barrel this winter here in the interior of Alaska... On top of skyrocketing fuel costs for transportation. How are we gonna do this?? Alot of folks up here are already getting pretty nervous and it's only June. People rely on fuel-oil to survive the harsh winters up here. Here in the interior they almost ran out of fuel-oil altogether last winter (yes.. they almost ran out of fuel oil to refuel customers). This isn't a matter of just the economy..For some it is a matter of life or death..Plain and simple.

35 dollars a barrel in less than 6 months.. At this rate, the January fuel prices will have doubled in less than 2 years. And how long until they triple?

Basic economics is ups and downs. In the oil industry, these ups and downs depend on alot of different factors. Primarily geopolitics, supply and demand, and it doesn't help that we have a weak dollar and a housing mortgage crisis. None of these situations are going to get better in the short-term because the factors that determine oil prices are not getting better. Geopolitics are screwed with all that's going on..(possible war with Iran now? How long will we be in Iraq?) and Global demand is skyrocketing due to developing countries' ever-increasing energy output.

-ChriS


[edit on 7-6-2008 by BlasteR]

reply to post by Copernicus

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Sure, but in the US they drive cars that use as much as triple gas per mile compared to European models and the US urban city design was build for oil company purposes... long distances to drive ;-)

reply to post by Choronzon

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Is this list of different currencies of any use to you?

The Oil Drum


Or maybe even this list ...

Federal Reserve Bank of Dallas

Hope they help ...


Edit to add ;

The oil price mirage


[edit on 7-6-2008 by Extralien]

There isn't a 1 to 1 correlation, but the falling dollar definitely has influence on oil...but what some people are ignoring is that most of yesterday's news was short covering in the oil pits after Israel threatened Iran...that combined with the ECB's comments and a weak jobs number was the perfect storm. The thing is, the ECB can't raise interest rates, they will murder their member's economies if they do. I actually have much more faith in the U.S. than in Europe right now...they are strangling their economy between a Euro and a barrel of oil.

Here is a much better chart of the USD dollar's performance and the recent surge in oil....you can't just look at the dollar's pair with just one currency. Here is Oil (The USO) compared to the dollar index.

stockcharts.com...

The line behind the USO price is the US dollar index. The dollar is down ~5.5% while Oil is up ~53%...so it's not exactly...1 to 1.

[edit on 7-6-2008 by yellowcard]

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