BajaNomad
Not logged in [Login - Register]

Go To Bottom
Printable Version  
 Pages:  1  2
Author: Subject: The New Yorker profiles Carlos Slim
arrowhead
Banned





Posts: 912
Registered: 5-5-2009
Member Is Offline


[*] posted on 6-6-2009 at 06:47 PM


Quote:
Originally posted by flyfishinPam
so the speculator comment from above (first I think) stated that the price of oil is $70 and rising and that rise is counting on the economy looking better in the near future, which dictates an increased demand?
later on in the thread the price of oil is being driven up due to the decreasing value of the dollar??
fisherwoman confused here.


The price of oil is increasing because oil is traded in dollars. The price you see is the price in the futures market -- the expected price of oil a few months out. In the cash delivery market, oil is cheaper. The price of oil is not increasing because of expected higher demand. It is increasing because traders expect the dollar to become weaker as the government keeps printing more money.

Just look at the peso. It slipped under 13:1 this week. Mexico's economy sure isn't getting any better. It is the expectation of a weak dollar that is causing this.
View user's profile
woody with a view
PITA Nomad
*******




Posts: 15940
Registered: 11-8-2004
Location: Looking at the Coronado Islands
Member Is Offline

Mood: Everchangin'

[*] posted on 6-6-2009 at 06:49 PM


Quote:
Originally posted by flyfishinPam
so the speculator comment from above (first I think) stated that the price of oil is $70 and rising and that rise is counting on the economy looking better in the near future, which dictates an increased demand?
later on in the thread the price of oil is being driven up due to the decreasing value of the dollar??
fisherwoman confused here.
these two reasons seem almost polar opposites but the second one sounds more realistic
avgas $6 bucks a gal? holy #^@%!


demand drives the price of everything. when you buy something and pay with dollars, and then the value of a dollar drops (inflation) it takes more dollars to buy the same barrel.




View user's profile
 Pages:  1  2

  Go To Top

 






All Content Copyright 1997- Q87 International; All Rights Reserved.
Powered by XMB; XMB Forum Software © 2001-2014 The XMB Group






"If it were lush and rich, one could understand the pull, but it is fierce and hostile and sullen. The stone mountains pile up to the sky and there is little fresh water. But we know we must go back if we live, and we don't know why." - Steinbeck, Log from the Sea of Cortez

 

"People don't care how much you know, until they know how much you care." - Theodore Roosevelt

 

"You can easily judge the character of others by how they treat those who they think can do nothing for them or to them." - Malcolm Forbes

 

"Let others lead small lives, but not you. Let others argue over small things, but not you. Let others cry over small hurts, but not you. Let others leave their future in someone else's hands, but not you." - Jim Rohn

 

"The best way to get the right answer on the internet is not to ask a question; it's to post the wrong answer." - Cunningham's Law







Thank you to Baja Bound Mexico Insurance Services for your long-term support of the BajaNomad.com Forums site.







Emergency Baja Contacts Include:

Desert Hawks; El Rosario-based ambulance transport; Emergency #: (616) 103-0262