So is the weaker dollar driving oil prices up or are high oil prices driving the dollar down?
Since the beginning of the year there has been a 67% rise in the cost of oil in dollar terms, but only 52% rise for those who paid in euros.
Add a resurgence of sovereign debt woes stemming from Europe and the situation in Greece, and it seems like things are only getting worse. (Read Oil, Dollar Fall Amid Greek Crisis And Global Slowdown).
FORBES: Bernanke's Press Conference: Another Jackson Hole Moment?
There are a number of reasons to explain the fall in oil prices, including a stronger dollar (oil is priced in dollars) and weaker global demand.
FORBES: Use This Currency To Short Oil, Another One To Buy Gold
Some fiscal conservatives worry about the impact of America's appetite for imported oil on the dollar.
Oil-exporting countries have reinvested their gains from higher oil prices in dollar assets.
Rich economies now use half as much oil per real dollar of GDP as they did in the early 1970s.
Developed countries use half as much oil per real dollar of GDP as in the mid-1970s, thanks to improved energy efficiency.
Hundred-dollar oil prices, creeping inflation in food and other commodities, gold behaving the way it did in 1979--could we be in for a repeat of stagflation?
The US has military advisers here training Georgia's fledgling army, officially to help Georgia counter terrorist threats but also to guarantee security for a new multibillion-dollar oil pipeline running through Georgia.
Syria, Iran, Malaysia and Venezuela ink 2.6-billion-dollar oil deal.
CENTERFORSECURITYPOLICY: America's blunder, Chavez's success
Previous rounds of stimulus have weighed on the dollar, helping to strengthened the oil price, because it made the dollar-denominated commodity cheaper for holders of other currencies.
The key outside markets crude oil and the U.S. dollar index were also in a bearish mode for the precious metals Friday, as the dollar index was firmer and crude oil prices were lower.
The key outside markets crude oil and the U.S. dollar index are also in a bearish mode for the precious metals Friday, as the dollar index is firmer and crude oil prices are lower.
But they would not address the underlying mismatch between any oil exporter and a dollar peg.
Gold prices fell on Friday, pressured by weakness in crude oil and a stronger dollar.
FORBES: METALS OUTLOOK: Weaker Outlook For Gold Prices Likely
Between the years 2006-2009, for example, the correlation between the Canadian dollar and oil prices was approximately 80%.
FORBES: Use This Currency To Short Oil, Another One To Buy Gold
In the short term, the US dollar and oil have been highly correlated.
Of course, there's one sure-fire way to slow the price surge: The Federal Reserve could prop up the dollar, oil's currency.
Another banker discussed the relationship of a falling dollar to oil prices.
Advocates said oil companies lose a dollar every time they gain one.
Perhaps because the storm did not end up being as strong as expected, or because of a strengthening dollar, oil prices fell Monday.
GDP, profit margins, the dollar and oil pricing are pivotal elements.
Even if Mr. Paulson were to figure out the link between the weak dollar and oil dictators around the world, a greenback reversal would take time.
Historically there has been little correlation between the dollar and oil prices, and while the relationship strengthened last year following the credit crisis, it has since weakened again.
The yen, yielding just 0.5%, was a cheap source of borrowed funds to buy much higher-yielding currencies like the New Zealand dollar, oil, U.S. high-yield bonds or even gold.
While abiding by IMF-crafted pro-cyclical policies which included cutting spending, poverty and unemployment soared as the recession deepened. (Read Weakening Euro And Oil Stock Piles Drive Dollar Higher).
FORBES: Greece: Preemptive Debt Restructuring Or Eurozone Exit
Oil Prices Soar, Dollar Dives.
CENTERFORSECURITYPOLICY: Ecuador's reforms: in the footsteps of Chavez
应用推荐