Quote:
Originally Posted by ADT
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.
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Thanks for the explanation. Sounds better than the bank manager who said it was down to 'hedge funds' and market speculation.
Mind you there's always a good excuse for rising prices. Can't help feeling that, as with so many other things, some are getting rich out of this, and not just the government and the oil industry!
We're now at 119p/l for diesel and still rising. Managed to save some money by having a much lighter right foot, and sending my son to school on the school bus as we are just over 3 miles away. Benefit is fewer town miles and 3 mile more from every gallon of fuel.