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How Does The Cost Of Oil Affect YOUR Retirement?
Old 08-13-2004, 08:33 AM   #1
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How Does The Cost Of Oil Affect YOUR Retirement?

How is this for a theory? This is just a theory as I am not sure I actually believe this even though it is my theory.

The price of Oil amongst other things could be directly related to the decline of the US Dollar. As Oil is traded internationally in the GreenBack. If I were outside the country setting prices, I would want it increased.

While on the subject of the USD IT brings to mind another issue of how the USD affects us. For another post I think.

SWR
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Re: How Does The Cost Of Oil Affect YOUR Retiremen
Old 08-13-2004, 09:09 AM   #2
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Re: How Does The Cost Of Oil Affect YOUR Retiremen

Good theory. A falling dollar does cause inflation. But in the case of oil, the price has more than doubled in the last couple of years (from about $20 to $45/bbl), while the dollar has fallen something like 30% (depending on the currency).

We *will* see more prices rise because of the weak dollar. So far, a lot of exporters have absorbed the hit, but they can't keep their prices down for long.
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Re: How Does The Cost Of Oil Affect YOUR Retiremen
Old 08-13-2004, 01:18 PM   #3
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Re: How Does The Cost Of Oil Affect YOUR Retiremen

I think the price of oil is mostly a supply and demand
issue with growing China demand, Putin's grab and fear of terrorism being the wild cards.

Cheers,

Charlie
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Re: How Does The Cost Of Oil Affect YOUR Retiremen
Old 08-13-2004, 02:44 PM   #4
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Re: How Does The Cost Of Oil Affect YOUR Retiremen

Read Stephen Leeb's "The Oil Factor"......

One point in the book...as the price of oil goes up...the stock market HAS to go down...why?

When economies do well...there is more "motion" (i.e. motion equals trips to the store, goods being produced, shipped, etc----this volume equals huge "demand" for the oil companies--hence, they kinda have to tweak their supply according to fundamental pricing principles.--HOWEVER, in the case where there is civil unrest in the producing region....real, perceptive, or fabricated---they exploit the hell out of this---using it as a reason to keep prices up...all of the aforementioned "motion" requires some energy...today that energy is "oil"....

This book is a must-read for perspective....the funny thing is...I had to pay $15 to validate an observation I'd already made....*damn I'm brilliant* *

TD
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Re: How Does The Cost Of Oil Affect YOUR Retiremen
Old 08-13-2004, 04:50 PM   #5
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Re: How Does The Cost Of Oil Affect YOUR Retiremen

I sort of got the same idea from Leeb's free stuff - trying to get me to subscribe to his newsletter.
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