Oil Skyrocketing? No! USD Plummetting!

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 speculators......Oil will VERY expensive!

Good post!

And why is Ron Paul the only one that actually mentions this? The collapsing dollar should be issue number 1 for the presidential candidates.

Here is a graph I put together showing the price of oil in USD vs EURo's. You'll notice that everything is normal until about 2006 when the USD finally gives way to the Euro.

The price of oil for US citizens more than doubles, a 110% increase!!

However the price of oil in EURo's only rises 30%......



[edit on 6/6/2008 by Choronzon]

Hmmm, nice connection Choronzon, I never looked at it this way. Makes sense though. I wonder what caused the devaluation of the dollar then? Perhaps something to do with the way America has been treating everyone else?

Actually it would have to do with the amount of national debt. America is spending 100's of billions every quarter on the war on terror.

Also, the subprime mortgage loan crises has squandred the US economy.

Alot of things combined have tanked the USD.

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!

Great work Choronzon!

I've been trying to tell people this for weeks. Oil has only risen in price at about the rate of inflation around the world and the Europeans have only been paying about 5% more per year. The US dollar is almost worthless now and since oil is priced in US dollars, we need a barrel of money to buy a barrel of oil almost.

Oil's 2-day surge tops record
just closed at around 139 a barrel
At 1:20 p.m. ET, the July light crude contract was up $8.81 to $136.60 a barrel on the New York Mercantile Exchange, surpassing the $135.09-a-barrel trading record set May 22.

At this point, a bet on oil, like Gold, is a bet against the Dollar. Crude began to spike yesterday on the hawkish comments by Tricochet regarding inflation and potential ECB rate-hikes...extremely Dollar negative. Specs looking to minimize losses against the Buck, jumped on it.

Imagine the relative value of the Dollar if it didn't have a lock on oil trade. A weaker Dollar means global entities have to buy/hold more Dollars to conduct energy trade....lending a modicum of back-door strength to the troubled currency.

Fix the Dollar and prices will stabilize...albeit in a higher range (production/demand issues). How to fix the Dollar?...first, raise interest rates...can't...the Fed is truly cornered here.

reply to post by bamaoutlaw


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]

it seems that the stock market would also be affected by the dollar's drop wouldn't it? I mean, the real value of any given stock wouldn't drop as the dollar did, and thus, in dollar terms would rise.
thus, a rising dow average doesn't necessarily mean that our economy is booming, it could just mean that it's just like everything else we are buying, soaring cost, because our dollar is falling like a rock.

You are still paying much less for gas than we do in Sweden I think. Here, a single liter of fuel costs about 2 dollars.

We have massive taxes on fuel. I think about 3/4 of the price goes to taxes.

Good thread though. Should open up some more eyes out there to what the American media is doing.


[edit on 7-6-2008 by Copernicus]

reply to post by Copernicus


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



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]

I heard that the only way any relief, however small, will come is if worldwide interest rates begin to rise, or if production of oil increases which at this point that does not look likely.

Get your wheel barrels here only $19.95... no 29.95... no wait only 69.95... no wait...

Remember Germany in the twenties?

You'll need a wheel barrel to take all the money in to buy a wheel barrel in the first place.

Hyper inflation could be just around the corner if the credit and oil crisis' get much worse.

[edit on 7-6-2008 by grover]

I have to put the blame on the world bank as well...bankers in new york and London set the prices for oil- not shell or techcron or opec really...any remainder of the bank's profits are given to them- the world bank is the true criminal here. Too much power, too much greed. It's ridiculous that in Saudi Arabia they're paying $0.45 per gallon.

The sooner Bush is out of office and we're out of Iraq- the sooner gas prices will level off...It's going to take a long time. People need to stop complaining about high gas prices to each other and protest it publicly instead.

No surprise, it's the elite goal to make the dollar decline to make way for alternative technology, and the return on big business due to the cheaper pay in the US.

If they wanted to they can make the dollar a lot more stable.

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]