3/25/2004

Oil and gasoline prices and Media mis-information Forget all the bullshit you see on TV. The main culprit is the cheap dollar. Oil is traded for dollars world wide. Consider that the dollar had fallen from roughly 130 to 86 on the World Forex (1.3 ECU to buy one dollar to .86 ECU to buy one dollar) a fall in value of 41%. The rise in crude has been roughly from $24 to $39 a rise of 54%. The net in dollar rise has been 15%. World demand is skyrocketing with China consuming more and more, U.S. economic recovery increasing demand, and the skimming for the reserve. You will note that as the dollar is getting stronger (6% in the past month from 129 to 121; $129 to buy 100 ECU to $121 to buy 100 ECU) crude prices are coming down (check the futures pages $36 this AM). The drop mirrors the dollar strength. BTW this oil price rise will hasten by light years the development of alternate fuels. When this happens watch all governments go crazy trying to tax a basically free fuel so roads can be built and maintained. Think about it.

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