Weak dollar adds $20 to the price of oil

Filed under: Forecasts, Management, Competitive strategy, China, Oil

The price of oil has risen from about $30 per barrel at the height of the economic recession to the present $77 per barrel. Much of the increase is due to the weakness in the U.S. dollar. Rex Tillerson, CEO of Exxon Mobil (XOM) told CNBC: "If you put the price of oil, which is priced in dollars around the world, and if you look at what some effects are with the weak dollar -- in our view that is contributing $20 to $25 dollars per barrel to the price."

Globally, Tillerson said, oil is well supplied with historic high inventory levels, especially in the U.S. This is causing the market to be a "bit soft," according to Tillerson.

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Weak dollar adds $20 to the price of oil originally appeared on BloggingStocks on Sun, 15 Nov 2009 16:31:00 EST. Please see our terms for use of feeds.

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