The Mudcat Café TM
Thread #106133   Message #2190308
Posted By: GUEST,ALCAN1
09-Nov-07 - 10:21 PM
Thread Name: BS: Oil prices/ Dollar exchange rate
Subject: RE: BS: OIl prices/ Dollar exchange rate
Its a very simple question and a simple answer. The oil is priced in US dollars yes. Which means the price of crude is going DOWN for 6.5 billion people around the world while its increasing by over 15% for Americans because of the decline in the dollar.

Gas and other petro products are rising in certain parts of the world (mainly Europe) Becaus ethe US has lost over 500 oil refineries over the last 10 years. The US now IMPORTS more of the refined product (gas, etc) then the raw material. It put a strain on the capacity of the refineries in Europe and the rest of the world. Simple supply and demand. If Americans are buying the refined product in other countries then that takes away from the total output by that country. The price goes up where that capacity is strained.