Opec blames oil prices on floundering US dollar
OPEC is stating what none of our US "Strong Dollar" advocates (hint: Paulson and Bernanke) will not: It's all about the dollar stupid!
If the Dollar weren't so weak, Oil wouldn't be priced so high... So, stop cutting rates, slow down the presses and refrain from bailing out any more of the unscrupulous, greedy financial sector, and the dollar will gain strength--allowing oil prices to come down...
Opec blames oil prices on floundering US currency
THE president of Opec has predicted that the price of oil could stay as high as 110 a barrel for the rest of the year, spurred by investors seeking a hedge against the weakening US dollar.
Chakib Khelil, president of the global oil cartel, who is also the Algerian Energy Minister, said: “There are big pressures on Opec — and some consuming nations would like to present Opec as being behind current high prices.
“But the truth is that the current prices are linked to US economic problems as well as to the value of the dollar.”
‘Weak dollar behind rising crude prices’
Saudi Arabia would like to see oil prices stabilise between $70-80 a barrel as much higher prices could precipitate the emergence of other viable sources of energy, a well-known US oil analyst said yesterday.
Jean Francois Seznec, a Visiting Associate Professor at Georgetown University’s Centre for Contemporary Arab Studies, said the weak US dollar has been the main cause of the increase in crude oil prices more than $100 and blamed the present US Administration for the decline in the value of the greenback.
“I think the Saudis see a danger in the price of oil being at $100 and above a barrel,” Seznec said at a Gulf reform conference in Abu Dhabi yesterday.
“The danger is that it creates enough incentives for developing all kinds of alternate sources of energy investments to take place, which will not happen overnight. Still, the Saudis will like to see the price of oil lower, ranging between $70-$80 a barrel.
“But if the value of the dollar keeps falling, they have to make up for it… it’s a vicious circle,” he added.