Exxon: Weak Dollar Adding $20 to Oil Prices (XOM, USO)
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. …
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
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
Contact [email protected] for any questions or corrections.
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.
