While fuel prices are in the news a lot these days, we might do well to
realize that the value of crude oil hasn't really gone up as much as we
think- much of the price pain is because the US dollar has gone down.

Oil is an international commodity, and the producers can sell it almost
anywhere in the world. The US dollar is getting clobbered on foreign
exchanges all around the planet. It took $1.60 Canadian to buy a US
dollar about a year ago, and it now takes only about $1.20. It's the
same with almost all other currencies vs. the dollar. If we're going to
buy an internationally marketable resource and pay for it with a
declining currency, why should we be surprised if it takes more of
those depreciating dollars to buy the same bbl of oil?

On 23 Aug 2005 17:48:55 -0700, wrote:

While fuel prices are in the news a lot these days, we might do well to
realize that the value of crude oil hasn't really gone up as much as we
think- much of the price pain is because the US dollar has gone down.

Oil is an international commodity, and the producers can sell it almost
anywhere in the world. The US dollar is getting clobbered on foreign
exchanges all around the planet. It took $1.60 Canadian to buy a US
dollar about a year ago, and it now takes only about $1.20. It's the
same with almost all other currencies vs. the dollar. If we're going to
buy an internationally marketable resource and pay for it with a
declining currency, why should we be surprised if it takes more of
those depreciating dollars to buy the same bbl of oil?

What you say is true, but a nice side effect is that my friends from Holland are
coming to visit in a few weeks. They can afford it because the dollar is so
cheap!

--
John H.
On the 'PocoLoco' out of Deale, MD

I give him more credit than that. Once you recognize that the goal of the
bush presidency is to make his "insiders" richer then every action the
current administration has taken makes sense. Including the war.

"Harry Krause" wrote in message
...
wrote:
While fuel prices are in the news a lot these days, we might do well to
realize that the value of crude oil hasn't really gone up as much as we
think- much of the price pain is because the US dollar has gone down.

Oil is an international commodity, and the producers can sell it almost
anywhere in the world. The US dollar is getting clobbered on foreign
exchanges all around the planet. It took $1.60 Canadian to buy a US
dollar about a year ago, and it now takes only about $1.20. It's the
same with almost all other currencies vs. the dollar. If we're going to
buy an internationally marketable resource and pay for it with a
declining currency, why should we be surprised if it takes more of
those depreciating dollars to buy the same bbl of oil?



Not to worry; Bush hasn't done squat in 4.5 years to help our trade
imbalances, or the clobbering of our currency.

I'm reading in this weeks Time mag which states we only import 42% of our
oil. American oil companies SCREWING Americans! Just like Enron and all the
other American companies F'in us!



wrote in message
ups.com...
While fuel prices are in the news a lot these days, we might do well to
realize that the value of crude oil hasn't really gone up as much as we
think- much of the price pain is because the US dollar has gone down.

Oil is an international commodity, and the producers can sell it almost
anywhere in the world. The US dollar is getting clobbered on foreign
exchanges all around the planet. It took $1.60 Canadian to buy a US
dollar about a year ago, and it now takes only about $1.20. It's the
same with almost all other currencies vs. the dollar. If we're going to
buy an internationally marketable resource and pay for it with a
declining currency, why should we be surprised if it takes more of
those depreciating dollars to buy the same bbl of oil?

wrote in message
ups.com...
While fuel prices are in the news a lot these days, we might do well to
realize that the value of crude oil hasn't really gone up as much as we
think- much of the price pain is because the US dollar has gone down.

Oil is an international commodity, and the producers can sell it almost
anywhere in the world. The US dollar is getting clobbered on foreign
exchanges all around the planet. It took $1.60 Canadian to buy a US
dollar about a year ago, and it now takes only about $1.20. It's the
same with almost all other currencies vs. the dollar. If we're going to
buy an internationally marketable resource and pay for it with a
declining currency, why should we be surprised if it takes more of
those depreciating dollars to buy the same bbl of oil?

Hogwash. Denmark, the Netherlands, and several other countries pay more
than $6/gallon for gas. Countries like Iraq pay less than 20 cents. The
value of the US dollar has nothing to do with either of those situations.

NOYB wrote:
wrote in message
ups.com...
While fuel prices are in the news a lot these days, we might do well to
realize that the value of crude oil hasn't really gone up as much as we
think- much of the price pain is because the US dollar has gone down.

Oil is an international commodity, and the producers can sell it almost
anywhere in the world. The US dollar is getting clobbered on foreign
exchanges all around the planet. It took $1.60 Canadian to buy a US
dollar about a year ago, and it now takes only about $1.20. It's the
same with almost all other currencies vs. the dollar. If we're going to
buy an internationally marketable resource and pay for it with a
declining currency, why should we be surprised if it takes more of
those depreciating dollars to buy the same bbl of oil?

Hogwash. Denmark, the Netherlands, and several other countries pay more
than $6/gallon for gas. Countries like Iraq pay less than 20 cents. The
value of the US dollar has nothing to do with either of those situations.


"The value of the US dollar has no bearing on how many US dollars
Americans must pay for imported oil"? Did you really just advance such
a theory, NOYB?

Why would you do that? Could it be because the runaway federal spending
by the R majority congress and approved by the R president is one of
the primary factors causing our dollar to take a beating?

Please explain why the relative value of a nation's currency has no
effect on the pricing of imported commoditites (such as gourmet Iraqi
hogwash).

"thunder" wrote in message
...
On Wed, 24 Aug 2005 01:31:30 +0000, Scooby Doo wrote:


Yet another cogent argument in favor of increased domestic production,
including that tiny 7% sliver of ANWR as well as offshore.

A little short sighted, and a little too late. M. King Hubbert's
predictions were correct. US oil production peaked in 1971 and has been
falling ever since. Get used to it. We can not produce our way out of
dependence on foreign oil, never, ever.

http://mwhodges.home.att.net/energy/energy-a.htm


What is wrong with sucking everyone else's oil out of their ground and
buring it up here in the US?

You and your ilk always use the canard of "dependence on foreign oil" as a
way to try and change the behavior of the people that live in the US to your
liking.

Bert Robbins wrote:
You and your ilk always use the canard of "dependence on foreign oil" as a
way to try and change the behavior of the people that live in the US to your
liking.


You and your ilk always whine about how the rest of the world resents
your greed & your wastefulness & your pollution, as you suck up half the
worlds resources to support your beer belly life style.

The whining is getting much louder as the US ability to support this
erodes due to poor leadership.

DSK

On Wed, 24 Aug 2005 07:26:19 -0400, Bert Robbins wrote:



You and your ilk always use the canard of "dependence on foreign oil" as a
way to try and change the behavior of the people that live in the US to
your liking.

The operative word is "dependence". When the economy tanks because of the
escalating price of oil, your "ilk" will blame it on Clinton. Or when
supplies get tight, and we are in yet another oil war, blame it on the
liberals. Or when Chavez says "F* you" and stops shipping us oil,
assassinate him. It's a fair trade, blood for oil.

35 years ago, when the first oil crunch occurred, the smart money was on
developing an effective oil policy to prevent future occurrences. That
still hasn't happened, but then we aren't very smart, are we?

wrote in message
oups.com...

NOYB wrote:
wrote in message
ups.com...
While fuel prices are in the news a lot these days, we might do well to
realize that the value of crude oil hasn't really gone up as much as we
think- much of the price pain is because the US dollar has gone down.

Oil is an international commodity, and the producers can sell it almost
anywhere in the world. The US dollar is getting clobbered on foreign
exchanges all around the planet. It took $1.60 Canadian to buy a US
dollar about a year ago, and it now takes only about $1.20. It's the
same with almost all other currencies vs. the dollar. If we're going to
buy an internationally marketable resource and pay for it with a
declining currency, why should we be surprised if it takes more of
those depreciating dollars to buy the same bbl of oil?

Hogwash. Denmark, the Netherlands, and several other countries pay more
than $6/gallon for gas. Countries like Iraq pay less than 20 cents. The
value of the US dollar has nothing to do with either of those situations.


"The value of the US dollar has no bearing on how many US dollars
Americans must pay for imported oil"? Did you really just advance such
a theory, NOYB?

Oil prices are based in U.S. dollars. If fifty US dollars buys a barrel of
oil, and the dollar's value drops relative to the Euro, then the price of
oil appears cheaper to countries that use the Euro. Oil doesn't appear more
expensive to people buying it in US dollars! Only supply and demand can do
that.





Why would you do that? Could it be because the runaway federal spending
by the R majority congress and approved by the R president is one of
the primary factors causing our dollar to take a beating?

A weak dollar is good for trade. We may have some of the highest trade
imbalances that we've ever seen...but they're mostly with China. And that's
only because China has pegged its currency to the US dollar.

If the dollar was strong, the trade imbalance would be even worse because it
would cause a larger trade deficit with other countries besides China.


Please explain why the relative value of a nation's currency has no
effect on the pricing of imported commoditites (such as gourmet Iraqi
hogwash).

Because the price of oil is based in US dollars. Always.

A weak dollar just makes the oil cheaper to other countries. It doesn't
make the oil more expensive to the US consumer.
However, oil is *not* cheaper to other countries despite the relative
strength of their currency. Why? Because the price of oil is a factor of
supply and demand (whether that demand is real or perceived)...and not the
strength of the US dollar.