Oil hits another record high as dollar tumbles to record low

[babylonsister]

Oil hits another record high as dollar tumbles to record low
By PABLO GORONDI Associated Press Writer


Apr 17th, 2008 | Oil prices hit all-time highs above $115 a barrel Thursday with reports that oil and gasoline stocks in the United States were lower than expected and as the dollar hit record lows.

Light, sweet crude for May delivery rose as high as $115.54 a barrel in electronic trading on the New York Mercantile Exchange. It eased back to $114.89 a barrel by the afternoon in Europe, down 4 cents, as the dollar strengthened slightly and traders booked profits.

On Wednesday, the contract settled at $114.93 a barrel.

In London, Brent crude futures fell 1 cent to $112.65 a barrel on the ICE Futures exchange.

Oil and other commodities continued to attract investors as the values of the dollar continued falling and as a hedge against inflation. A weaker dollar also makes oil cheaper to investors overseas.

The euro hit an all-time high of $1.5982 on Thursday, its second record in as many days against the sagging dollar, but then lost a little ground, falling to $1.5927 late in European trading.

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http://www.salon.com/wires/ap/business/2008/04/17/D903IF289_oil_prices/index.html

[LSparkle]

1. It cost me $56 to fill my tank this morning

I can blame this on the price of oil/gas, but it's also an
indication of the dollar's weakness. Our government can't
control the price of the former, but this administation's
policies are DEFINITELY to blame for the weak dollar.

[truedelphi]

2. Keep letting our Treasury offer bailouts to all financial institutions

That are about to fail, and the dollar will keep deflating.

And since we need to pay for oil in Euros, we will continue to see that the price of oil skyrockets.

This leads to businesses failing, which leads to more people being laid off, which leads to more foreclosures, which leads to more financial institutions getting bailout money.

Ain't supply side economics, trickle down economics, and job outsourcing mighty fine??

[Clear Blue Sky]

3. I remember a book from many years ago called

"Europe on $5 a day". Given the current value of the dollar, is the revision called "Europe on $500 a day"?

[truedelphi]

4. Probably about right. n/t