Dollar down = oil up?
George Washington on US $1 bill
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BOB MOON: A reversal of fortunes in a good way for the dollar this morning: It's rebounded some from a 20-month low against the euro. The greenback slipped so far last week, there's talk it could cause oil prices to spurt back up. Here's Marketplace's Stephen Beard:
STEPHEN BEARD: Oil ministers from Nigeria and from Qatar both expressed concern today about the fall in the dollar.
The 11% decline against the euro this year has affected oil producers because they price their crude in the American currency. In effect they've suffered a price cut courtesy of the foreign exchange market.
Nigeria and Qatar say this could persuade most OPEC members to cut production again when they meet next week. Chris Skrebowski of Petroleum Review:
CHRIS SKREBOWSKI: If you like, strengthens the hand of those that want to ensure that the price stays up . It's the idea that they're being short-changed and that will definitely weigh in their deliberations.
OPEC is still divided over the issue, but at the week end the most powerful member Saudi Arabia indicated that it may favor a cut in production because of the growing stockpiles of crude.
In London, this is Stephen Beard for Marketplace.