Oil Prices Jump
Drill baby Drill, huh? Randy Kuhl says drilling will lower prices.
Well - What about looking closely at how the bail out and the potential give away to Wall Street will affect Oil process? As we have been saying all along - it isn’t a supply problem and more drilling doesn’t lower oil prices. via Huffpo (my bold)
But others say the massive outlay of taxpayer money will further devalue the dollar and touch off another commodities bull-run as investors race to buy hard assets an inflation hedge. The 15-nation euro rose to $1.4686 in morning trading, up from the $1.4470 on Friday. A weak greenback was a catalyst for the commodities boom of the past year.
“That trade was very successful in past so if the dollar keeps weakening, a lot people are going to want to own hard assets like crude,” said Andrew Lebow, senior vice president and broker at MF Global in New York.
Remember - Oil was recently under $100 a barrel.
Crude has gained about $20 in a dramatic four-day rally that has at least temporarily halted oil’s steep two-month slide below $100.
No, the flood of dollars printed to pay for this bail out will depress the dollar’s value against other currencies. Meaning Higher oil prices. Coupled with other factors (strife, weather) and guess what? Guess what else? Drilling doesn’t matter.
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