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  • From: Don Bowen KI6DIU <don.bowen AT earthlink.net>
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Oil prices
  • Date: Thu, 18 Oct 2007 20:12:55 -0700

At 10/18/2007, you wrote:

Don, while I agree that this is a sure sign to get the homestead in order,
the two have something to do with one another. In the past the Saudis have
matched US interest rates to keep the petro in the petro-dollar. This time they
didn't, would have been fools to do so. So some of the increase in oil prices
is actually a decrease in the value of the dollar. Not that that does us any
good.

The fall of the dollar has a direct direct affect on the price of oil to us. Oil has been priced in dollars for years but with the fall, oil producing countries are moving away. They have no real confidence in our economy. The fall of the dollar was precipitated by the 50 basis point drop in the prime and many observers that this next week will see a 25 point drop.

IF they could. However if OPEC is at near peak capacity now, as some
suggest, they can't significanly increase production and therefore have no power to
restrain anything. Not only that, OPEC knows full well that all the alternate
energy in the world doesn't add up to a tiny fraction of the oil used each day.

OPEC is not able to keep up with demand, as one observer said "The producing countries are facing certain strains." Peak production was in May of 2005 at 85 BBD and demand has risen to 88 BBD since. Our gun happy administration is not helping at all, one observer said that the day you hear that Iran was attacked is the day when oil will reach $100.



Don Bowen Awl Knotted Up KI6DIU
http://www.braingarage.com




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