Quote:
Originally Posted by re_guderian
So a 10% decline in the dollar is responsible for a 50% increase in oil?  (Jan to July '08). Why hasn't every other import that trades in $'s gone up 50% then in the last 6 months? This implied cause/effect curve (which I doubt exists to the extent of the recent run-ups we've seen) seems to have dramatically changed it's slope in the last 6 months then, compared to the last several years... I call BS as a major impact on the last 6 month's change in oil price... |
The strength of the dollar is just on piece of the puzzle. The last time that the dollar had parity with the euro was in 2001.
The part of the puzzle is the unreliable numbers on supply/demand.
The other part of the puzzle is the massive influx of investments in commodities (oil included) as a investment vehicle to hedge against the falling dollar and inflation in the US.