Finding the link between oil and Greece
A rickshaw driver carries empty oil barrels on a HoChiMinh city street.
JEREMY HOBSON: Oil prices are lower on the news. Down around $93 dollars a barrel in New York trading. Chris Low is chief economist with FTN Financial. He's with us from New York. Good morning.
CHRIS LOW: Good morning.
HOBSON: Well Chris oil prices are down. This morning they're down 20 percent from last month. That can't all be Greece, can it?
LOW: It's partly Greece, sure. But it's also because the dollar's stronger. And when the dollar's stronger that means we can buy more goods that are produced over seas including oils.
HOBSON: So as policy makers try to figure out how to get oil prices down, is the best way to just strengthen the dollar?
LOW: It might be. And in fact I think that's part of the change of heart at the Fed. You know, Ben Bernanke came out and said the other day he may not want to print more dollars and it's partly because the strong dollar helps.
LOW: Chris, just quickly, when do you think we'll actually start to feel these lower oil prices at the gas pump?
HOBSON: We're already beginning to see it, but it's going to take a while for this oil to get to the refineries. I think we're going to see lower prices for another month at least, even just reflecting where oil is today.
LOW: Chris Low, Chief Economist with FTN Financial, thanks so much.
HOBSON: You're welcome.