The way I hear it, the Bush administration
favors a low dollar to help the trade deficit.
The falling dollar is hurting OPEC.
Falling dollar puts pressure on Opec
By Javier Blas in London
Published: July 23 2007
The falling US dollar is lowering the Organisation of the Petroleum Exporting Countries’ purchasing power by up to a third, making the powerful oil cartel more reluctant to increase production and cut prices.
Although oil is trading near last August’s record $78.65 a barrel, Opec calculations show that, when adjusted for the weaker dollar and inflation, an average of the 12 Opec members’ crude oil prices has fallen in the past year.
FT.com / World - Falling dollar puts pressure on Opec