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joegrundman · 05-23-08, 10:48 AM

I was just reading a reason article suggesting that a major reason for this price spike is the dfalling value of the dollar. that is, because oil is traded in dollars and the global oil exporters do not want to see their revenues slashed because of the loss of dollar value, prices increase.

It goes on to talk more about speculators compounding this effect too, but the effects of speculation is something i do not understand

it also mentions geopolitical uncertainty, but this level of uncertainty has not increased at such a rate to account for all of the sudden change in oil prices

http://www.reason.com/news/show/125414.html

05-23-08, 10:48 AM	#9
joegrundman Ocean Warrior Join Date: May 2007 Posts: 2,689 Downloads: 34 Uploads: 0	I was just reading a reason article suggesting that a major reason for this price spike is the dfalling value of the dollar. that is, because oil is traded in dollars and the global oil exporters do not want to see their revenues slashed because of the loss of dollar value, prices increase. It goes on to talk more about speculators compounding this effect too, but the effects of speculation is something i do not understand it also mentions geopolitical uncertainty, but this level of uncertainty has not increased at such a rate to account for all of the sudden change in oil prices http://www.reason.com/news/show/125414.html __________________ "Enemy submarines are to be called U-Boats. The term submarine is to be reserved for Allied under water vessels. U-Boats are those dastardly villains who sink our ships, while submarines are those gallant and noble craft which sink theirs." Winston Churchill