Are You As Confused By Oil As I?
OPEC. Supply and demand. ANWAR. Venezuela. Off shore drilling. Shale. Speculators.
Unless you live under a rock, you’re probably as confused by all these oil players as I. I just don’t get it. Why does anything grow by over 50% in an 18 month period? The reasons gas stays so expensive just doesn’t click in my mind.
But, now I have a clue! I just listened to an incredible interview with Jim Tamney (don’t quote me on the spelling) from:
He explained in layman’s terms just why oil is so high. Want the easy explaination? It’s not that oil is so high as much as it is that the dollar is so weak. Example: in Europe, oil is up more than 160% in terms of the Euro since 2001. In that same time period, oil is up more than 360% in American dollars. That’s a prime example of just how weak the American dollar is. Does that make sense to you? It does to me!
I’ll never claim to be an economist, and really I don’t want to be. But I do want to understand our world better and RealClearMarkets.com is a great way to start self educating!