Quote:
Originally Posted by Happy Civic Owner
My maths is pretty reasonable but I can't work this one out - If oil is sold in dollars and the dollar is weak why are fuel prices going up instead of down?
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Lots of oil is sold in Euros or Yen, and the percentage that is not sold in dollars increases when the dollar is weak. IIRC Iran was in the news a while back for having more oil sales in Euros than in dollars. The media prefer to report in dollars per barrel - it is the traditional benchmark and it also produces a better headline figure. In fact, you can get the situation where the oil price in Euro or Yen is static, but the dollars per barrel will go up because of the falling dollar.