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To: Ditto

If the dollar is going down in value, the seller will want more $’s to earn the same profit. The price of oil went up ,in part, due to the drop in the $


56 posted on 12/14/2007 3:59:38 PM PST by newbie 10-21-00
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To: newbie 10-21-00
If the dollar is going down in value, the seller will want more $’s to earn the same profit. The price of oil went up ,in part, due to the drop in the $

You obviously have no understanding of commodity markets. Contrary to popular belief, neither the Saudis or all of OPEC combined can dictate the price of oil.

They can, within relatively narrow limits and time frames , control the amount of oil put on the market, but overall, market forces that no individual or cartel can control, determine the price of oil.

The dollar can be up or down relative to other currencies at any given time and still have no impact in and of itself on the 'price' of oil.

What we have at this point in time is oil production around the world at all time peaks. But demand around the world is also at all time highs. That demand is driven by a global wide prosperity we are now experiencing including nearly 3 billion people in China, India and other emerging economies in Asia crawling out of subsistence economies and entering consumer economies.

These are the good times my friend and you should pray that they continue. Considering the world wide demand, $100 / bbl or $3 gasoline, when adjusted for inflation is a damn bargain.

BTW. I don't know if you are old enough to recall the so-called gas shortages back in the late 1970s Carter debacle. I recall them very well and the gas that I couldn't get at any price probably cost me $100 a gallon in lost work.

$3 a gallon today is damn cheep for the value I gain from it. IMHO, keep the $3 gas pumping and I'll keep buying. It's a steal.

59 posted on 12/14/2007 8:53:36 PM PST by Ditto (Global Warming: The 21st Century's Snake Oil)
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