Posted on 06/17/2009 3:33:18 PM PDT by FromLori
"Demand has not picked up," says CEO Rex Tillerson.
Exxon CEO Rex Tillerson says a weakened dollar, not an increase in demand is the reason for the sharp run up in the price of oil.
“When you look at just fundamentals, there’s not a lot to support the kind of price movement we have seen, let’s say, in the last six weeks,” Tillerson, head of the world’s biggest oil company, said after a speech today at a gas conference in Groningen, Netherlands. Concerns about a weakening dollar and inflation had led some investors to bet on an economic recovery and try to get ahead of a rally, he said.
...“Demand has not picked up,” Tillerson said. “Demand continues to be relatively flat or down, and inventory levels are still very high around the world, including floating inventory levels,” he said.
(Excerpt) Read more at businessinsider.com ...
Has the price been going up in other countries?
Yes, but not at the pace that it's increased here.
I do not know but that is a very good question.
The dollar crashed in 2007 and 2008, but has been rising in 2009.
A barrel of oil goes up the same in all countries.
I believe oil is usually priced in dollars. As exchange rates vary, so does the price in the local currencies.
Read that on Yahoo once, which gives the explanation about as much validity as a NY Times article...
Seems to me that if oil goes up $5 USD, and my country's currency has increased in value 10% against the dollar, that the relative cost increase for my country will be less because my money buys more dollars.
West Texas Intermediate Crude was selling at about $47 bbl around 4/21/09. Now it is over $65 bbl.
Thats the insidious tax of inflation. We pay it every tank now.
It’s always going up for a whatever reasons...Any excuse will do. No one cares anymore.
Everything goes up except wages. Nothing new.
That's kind of hard to say as its been dropping since its recent peak in October of 2008. (it's been going down since that peak)
If the value of the dollar decreases relative to all other indecies, then the price of oil/gas would appear to be going up.
But not all currencies are declining at the same rate, so I was asking if it was increasing in price in other countries.
Thanks for the link papa bear!
http://finance.yahoo.com/news/US-Dollar-Mostly-Lower-as-CPI-fxcm-15554579.html?.v=1
Yes. But on the day of purchase of a barrel of oil it's the same price regardless of currency. What happens to the exchange rate after wards is meaningless to the day of the purchase.
US Dollar decline only accounts for about 33% of the oil price rise. There are other factors. Hedge fund scum probably and Goldman Sachs
Oil has become a hedge against inflation for the traders in THIS country. So in fact, the man is correct. When the dollar drops, they buy oil. Gold is the same as many other commodities.
Just wait till the fall. I expect the dollar to be just 80 to 90% to the Canadian dollar. Since China sold bonds today and will continue to do so to get out from under OUR debt, it will mean the printing presses will really be running over time to spit them 100s out.
History repeats. Prewar Germany could not pay its debt so it printed money..and the rest is history.
...and the minimum wage is due to go up another $1.00 per hour in a month or so.
Grab yer ankles!!
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