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November 18, 2007
This Isn't Good News
OPEC will study the weak U.S. dollar's effect on the oil cartel's earnings and investigate the possibility of a currency basket, Iran's oil minister said Sunday.[...]
Iran and Venezuela have been pressuring OPEC to study the effect of the falling dollar. But the suggestions were met with resistance from other OPEC members, including Saudi Arabia's foreign minister, who warned Friday that even talking publicly about the currency's decline could further hurt its value.
I didn't know what a currency basket was until I just now looked it up. The basic idea here is (I think) that OPEC wants to drop the dollar as their standard for the price of a barrel of oil and replace it with a price that reflects several currencies.
How much longer are we going to submit to being bullied for fuel? I love it when I get e-mails from so-called conservatives who are proud -- boastful -- of their massive oil and gas consumption. Odd that they don't mind bashing Sheehan, Belafonte or Spacey for meeting with Chavez, but they'll gladly give him money in exchange for oil. You know, because they're patriotic middle Americans and all.
Posted By Bob Cesca | November 18, 2007 02:24 PM | DIGG ME!
Comments
Bob,
It will make no difference. You need oil? Buy dollars or equivalent. The fall of the dollar just causes OPEC to raise its dollar price.
Let me see if I can figure it out. The dollar has fallen 8% in the recent past and OPEC oil has gone up 40% in that same time frame. So for sure rising oil prices are caused mostly by the falling dollar.
I have a bridge I want to sell you, but you got to hurry before the dollar falls further or I will have to raise my price.
It always pains me when people don't run the numbers.
Posted by: M. Simon ![[TypeKey Profile Page]](http://www.bobcesca.com/nav-commenters.gif)
at November 19, 2007 09:57 PM
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