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Sagging dollar boosts oil prices

Oil rigs in Culver City, Calif.

TEXT OF STORY

Scott Jagow: Now with the dollar falling today, the price of oil is, of course, rising -- it's above $146 a barrel.

Marketplace's Steve Henn is keeping on eye on the oil market this morning.


Steve Henn: It should have been a pretty good morning if you were hoping for falling oil prices. OPEC and the International Energy Agency both released reports saying they expected growth in global demand for oil will slow.

But despite that news, oil prices are still rising and believe it or not, the U.S. banking crisis may be partly to blame.

International investors are now spooked about the U.S. economy. They're selling U.S. assets. Energy economist Jo Dukert says that makes the dollar worth less.

Jo Dukert: Oil works in a global market so if the dollar is worth less, the price of oil obviously has to go up.

Adam Sieminski at Deutsch Bank says the pain isn't being felt equally.

Adam Sieminski: The impact of higher oil prices has taken a bigger toll on consumers here in the U.S. than it has in Europe.

Since 2000, the cost of a barrel of oil in euros has almost tripled. In the U.S., the price of oil has quintupled.

In Washington, I'm Steve Henn for Marketplace.

About the author

Steve Henn was Marketplace’s technology and innovation reporter for the entire portfolio of Marketplace programs until December 2011.
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as someone who lives 50% of the time in Venezuela I must take issue with your bias report on the oil industry there. Why no mention of the new markets in China and India Chavez is opening, no mention of the stealing by the middle managers that Chavez fired, for example my neighbor there put 3 kids thru college here 2 at U of Miami 1 at Texas on $30K a year in the 90's. That's how much he was stealing and that is just the tip of the iceberg. Why no mention that the strike was by management not the workers who were locked out, once again NPR like the rest of the US media does a hit piece on Venezuela, maybe you need to call me for a "fair and balanced" viewpoint before broadcasting this nonsense, finally the US needs Venezuelas oil far more than Venezuela needs the US oil market, there are plenty of countries who will buy it, and that will inflate the prices here even more.

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