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.