More fallout from the falling dollar
File this under "unintended consequences"…
The falling US dollar is lowering Opec's purchasing power by up to a third, making the powerful oil cartel more reluctant to raise production and thus cut prices.
Although oil is trading near last August's record price of $78.65 a barrel, studies by the Organisation of the Petroleum Exporting Countries show that when adjusted for currency fluctuations and inflation, prices have fallen in the past year.
The adjusted price averaged only $43.60 a barrel in June this year, compared with $44.30 a barrel in the same month last year, according to the latest Opec monthly report.
Yikes. No wonder OPEC says, in effect, that $60 constitutes the new floor for oil.