US Dollar lost 6% from Jan 20-09:"Why are we paying 80% more for Oil?"

A lot of world money ran into oil as a safe haven and that raised the price. That is the reason I believe oil will fall to around $50 a bbl soon.

The price of oil is based on futures and speculators have driven up the price just like when it went to $140!

My argument is the same. This rise in oil from the 30s to the 70s is due to Money investing in the futures of oil as a commodity.

Obama has been following the same steps of his predecessor (W) by raising oil prices to shore up excess US dollars. Oil prices have already doubled from January under Obama, trust that more "change" is to come.

Oil wells are split, some sell in Euro, others in Dollar. Countries who trade with the US are forced to buy oil at wells that denominate in Dollars. But those same countries will hedge their Dollar reserves and trade surpluses against the USD falling value into other assets. So the US raised oil prices under George Bush double, triple, and finally quadruple so there would be very little Dollars left too hedge and trickle back into the US causing further devaluation. Costing those countries more dollars to purchase oil they were left with less from trade surpluses to convert into other assets, this helped to strengthen and sustain the USD from falling any further.

The only drawback with raising oil prices is that it crushed the World economy and sent it into a Miniscule Depression, and that raising OIL prices again will further crush the World economy sending it into a Great Depression.

When Barrack Obama took office on Jan 20th 2009, oil prices per the barrel were $38.57
[link to tonto.eia.doe.gov]

The US dollar was 0.75410 against the second strongest currency of the World, the Euro.
[link to www.oanda.com]

Today oil is trading at $69.45 and the Dollar (1 USD = 0.7101 EUR).


What's wrong with this picture?


From Jan 20th to June 23rd the Dollar lost a little under 6% -- So why does it cost 80% more to buy the oil barrel if oil is denominated in the US Dollar? (petro-dollar)

I hope to soon hear from the wise folks of GLP's economic talents!!


Disclaimer: You need simple and basic 3rd grade arithmetic skills to be capable of answering, and a strong disbelief in Government science. 1.00794 + 1.00794 - (some mass) = [is not] 4.002602

A lot of world money ran into oil as a safe haven and that raised the price. That is the reason I believe oil will fall to around $50 a bbl soon.

This is complete Horse-Hockey, sorry Patrik.


- Why would anyone want to pay more for something?

- Do you want to pay more when you're buying stuff?


World Oil consumption is down, this alone should put in effect the laws of economics to lowside.

When Barrack Obama took office on Jan 20th 2009, oil prices per the barrel were $38.57
[link to tonto.eia.doe.gov]

The US dollar was 0.75410 against the second strongest currency of the World, the Euro.
[link to www.oanda.com]

Today oil is trading at $69.45 and the Dollar (1 USD = 0.7101 EUR).


What's wrong with this picture?


From Jan 20th to June 23rd the Dollar lost a little under 6% -- So why does it cost 80% more to buy the oil barrel if oil is denominated in the US Dollar? (petro-dollar)

I hope to soon hear from the wise folks of GLP's economic talents!!


Disclaimer: You need simple and basic 3rd grade arithmetic skills to be capable of answering, and a strong disbelief in Government science. 1.00794 + 1.00794 - (some mass) = [is not] 4.002602

the fraud market is all SPECULATION when it comes to buying and selling. Of course the feds will regulate banks but will never touch the OIL industry.

Ill have to side with Patrick on this
sounds stupid but yep price speculation by people sitting around on their asses is what drives the price of crude oil up

higher oil prices are good for the USD, to a point, as that means more $USD are transacting. Expensive oil does not necessarily mean devalued dollars.

Ill have to side with Patrick on this
sounds stupid but yep price speculation by people sitting around on their asses is what drives the price of crude oil up

That's fine, unfortunately you're going against the very laws of economics. Try and imagine a commodity such as gold when it was pegged to the Dollar for the answers.

what are you getting at?
Both gold and oil move up and down just like a stock.

I wish i had a chart that showed the 70's but mine dont go back that far.
In the 70's gold went from being sub $100 to around $700 i think (google these numbers...i dont feel like looking it up)
priced up due to speculation

Youll also notice the dollar is worth as much in 1992 and 1995 as it is now and gold was in the $400 range.
again thats due to speculation driving the price up now

Gold from 1993 to present
[link to i214.photobucket.com]
Oil from 2003 to present
[link to i214.photobucket.com]

Dollar from 1992 to present
[link to i214.photobucket.com]

because the price of oil went up.

The USD lost 6% of what? Color? Size? Sex appeal?

because the price of oil went up.

The price of oil is denominated by the USD.

If the USD loses 10% that's how much more it will cost to buy oil.

If the USD gains 10% that's how much less it will cost to buy oil.

what are you getting at?
Both gold and oil move up and down just like a stock.

Gold only began to fluctuate after the gold standard.

Oil replaced Gold as the commodity the Dollar is pegged too!

Look at this link carefully.
[link to tonto.eia.doe.gov]

Oil prices were always steady, and during the years the Feds printed much debt oil-prices fluctuated to the Dollars devaluation nicely. When the oil-war-currency began between the Europeans and the Americans, history tells the tale.


I wish i had a chart that showed the 70's but mine dont go back that far.
In the 70's gold went from being sub $100 to around $700 i think (google these numbers...i dont feel like looking it up)
priced up due to speculation

Youll also notice the dollar is worth as much in 1992 and 1995 as it is now and gold was in the $400 range.
again thats due to speculation driving the price up now

Gold from 1993 to present
[link to i214.photobucket.com]
Oil from 2003 to present
[link to i214.photobucket.com]

Dollar from 1992 to present
[link to i214.photobucket.com]

This is after the Gold Standard.

You must look to when Gold was pegged to the US Dollar.

The price of the US treasury bond is denominated in USD.

The price of the US treasury bond is denominated in USD.

LOL, what a retard, but a funny retard...

Ha,Ha,Ha, oh yeah and the price of the USD is denominated in the USD, lololololololol!!!! Fawk you made my night!!!

So oil was offically pegged to the Dollar in 85?
is that what you're saying?

[link to tonto.eia.doe.gov]

and look at this chart that shows Oil from 1970 til now
It wasnt exactly a flat line from 1970 until 1984

Just google "peak oil"

Be prepared to do some serious reading for a couple hours.

It's well worth the research and you owe it to yourself to learn and prepare.