Oil Tops $78 to Year High on Inventory Drop, Weak Dollar

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Published at: www.cnbc.com

Why the oil price must rise as the $ falls.

October 20, 2009

Analysis by: GLG Expert Contributor

When the $ falls the oil price falls in all the currencies that the $ falls against. A rise in the $ price of oil of $7.5 is a 10% rise but not if the € rises the same amount as the oil price rises. If that happens the price of oil in Europe remains constant. But is life that simple....?

Michele AcerraIndependent ConsultantMichele Acerra

Oil is cheap at $78 a barrel and we should increase gas usage for cars.

October 19, 2009

There are two main drivers of last week's temporary record: the value of the US dollar, which makes every commodity more expensive and the ever increasing US consumption of gasoline and distillates. The guzzlers on US roads are increasing, and powering vehicles with natural gas is not pursued vigorously enough. The "Peak Oil Theory" is no longer a theory and finding oil will continue to be more and more difficult and expensive.

Michael LynchConsultantMichael E. Lynch

Combination of factors drive crude oil prices higher

October 17, 2009

Crude oil prices settled above $78/bbl on Friday. Growing industrial production caused optimism for an economic recovery. Oil investors shrugged off a dip in U.S. stocks prices that followed General Electric's poor earning report. The plunge of the U.S. dollar helped the price of crude oil last week. U.S industrial production rose in September for the third consecutive month.

Oil Potential Gloom for the Economy

October 16, 2009

Analysis by: GLG Expert Contributor

The article points out that oil has risen above $78 despite the fact that the US maintains an inventory surplus, but that gasoline supplies fell over the past week. As most of us know the US government's monetary policy is based on a weak US dollar in the hopes of stimulating trade and breaking the credit jam.