S&P 500
7,617.20
-0.07%
Dow Jones
51,328.50
-0.08%
Nasdaq 100
30,667.20
-0.16%
Russell 2000
2,932.48
-0.02%
FTSE 100
10,379.30
-0.08%
Nikkei 225
68,501.70
+1.48%

Energy

Exxon: Weak Dollar Adding $20 to Oil Prices (XOM, USO)

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
The weak dollar has definitely been a contributor to the rise in the price of gold.  And it is also partly responsible for some of the oil gains that took prices back over $80 per barrel before the recent pullback.  But Rex Tillerson, the CEO of Exxon Mobil Corp. (NYSE: XOM), has actually quantified this with an assigned dollar value to CNBC.  His take is that as much as $20.00 per barrel is tied to the weakness of the US Dollar.

Tillerson told CNBC all the data for this.  He noted strong supply, record oil inventories, and a soft market.  He also noted that high oil prices will have an economic impact.  As far as $20, Tillerson actually said $20 to $25 per barrel.  Full details can be seen at a CNBC transript.

We have been tracking these inventory levels ourselves, and the demand alone has just not ever come anywhere close to the currency effect in the price of oil.  You could always blame China buying up excess production (remember, OPEC does cheat on quotas).

Unfortunately, investing in the United States Oil (NYSE: USO) does not always correlate to the exact underlying move in the price of crude.

JON C. OGG

DISCLOSURE:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options  Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.
Follow 24/7 Wall St. on Google
Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Jon C. Ogg |

The Value of All Oil at Exxon Mobil: Over $2.2 Trillion!

thinkstockExxon Mobil Corp. (NYSE: XOM) was just featured as one of our seven DJIA stocks that would lead the DJIA…

Jon C. Ogg |

S&P Rates Oil & Gas Stocks Stable (XOM, CVX, COP, APA, CHK, SLB, HAL, BHI, NE, RIG, DO, VLO, TSO, MPC)

As the markets swoon today from Friday night’s downgrade of US debt, Standard & Poor’s is making other changes to…

Wednesday Premarket Newsmakers: Tesla to Try Snake Oil, US to Try Oil
Paul Ausick |

Wednesday Premarket Newsmakers: Tesla to Try Snake Oil, US to Try Oil

Tesla CEO Elon Musk said the company will try advertising. Meanwhile, the U.S. Energy Department is offering to buy oil…

Paul Ausick |

24/7 Wall St. Closing Bell — June 12, 2012 (AAPL, HFC, LULU, BA, BX, KORS, FSNR, FDS, GAME, COOL, KFY, LUB, ZNGA, AONE, FSLR)

The three major US stock indexes opened higher this morning as despite weak data from the UK and higher debt…

Despite Mixed OPEC Outlook, Saudi Arabia Oil Output Hits Record High
Jon C. Ogg |

Despite Mixed OPEC Outlook, Saudi Arabia Oil Output Hits Record High

Despite the price of oil being low, there are several key surprises in the latest OPEC monthly oil market report.

Exxon Affirms 25% Capex Cut for 2016
Paul Ausick |

Exxon Affirms 25% Capex Cut for 2016

At an analysts meeting in New York Wednesday, Exxon Mobil CEO Rex Tillerson reiterated that the company's capital spending budget…

Why Goldman Sachs Is Pounding the Table for Investors to Buy Commodities for the Rest of 2018
Jon C. Ogg |

Why Goldman Sachs Is Pounding the Table for Investors to Buy Commodities for the Rest of 2018

After a serious rut, now the Goldman Sachs Commodities Research is telling customers that it's time to buy commodities.

Crude Oil Prices Slip on Big Inventory Build
Paul Ausick |

Crude Oil Prices Slip on Big Inventory Build

U.S. commercial crude inventories increased by more than 6 million barrels last week, according to the U.S. Energy Information Administration.

Douglas A. McIntyre |

Higher Oil Prices Already Impacting Inventories (USO, OIL)

The D.O.E. has just released weekly data for crude oil, and the losses in weekly inventories appear to be a…

Top Gaining Stocks

Hewlett Packard Enterprise
HPE • Vol: 153,197,465
Enphase Energy
ENPH • Vol: 8,360,053
Corning
GLW • Vol: 18,152,646
Alexandria Real Estate Equities
ARE • Vol: 4,337,015
Aptiv
APTV • Vol: 6,761,325

Top Losing Stocks

Trade Desk
TTD • Vol: 21,905,513
Intuit
INTU • Vol: 7,383,018
Coterra Energy
CTRA • Vol: 73,319,495
Cboe Global Markets
CBOE • Vol: 5,000,011
HP
HPQ • Vol: 29,259,826