Dollar Weak Record Highs for Crude Oil

A weak Dollar and tensions between Turkey, Iraq, and the US helped to push light sweet crude oil on the New York Mercantile Exchange to yet another record high above $88.00 a barrel.

The Turkish government’s decision Monday to ask the Turkish Parliament for permission to pursue Kurdish rebels into Iraq added to concerns about potential interruptions to oil supplies.

The long term bull market in crude oil has been assisted by a long term downtrend in the US Dollar. As the Dollar falls the price of commodities that are largely priced in Dollars , like gold and oil, tend to increase.

The mismanagement of fiscal and monetary policies in the US for an extended period of time almost guarantees that the Dollar will continue in a downtrend for a long time to come. Before the Dollar turns around there will likely be a true Dollar crisis with a sharp, sudden, fall in the Dollar that will amount to a worldwide panic out of Dollars.

The US Dollar is not at that stage yet, but seems to be on its way.

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