iPath S&P GSCI Crude Oil Total Return Index ETN (AMEX:OIL)

repo47 (64.09) Submitted: 3/4/2009 6:31:55 PM

Recs: 0

Watch the dollar. One of the factors into buying oil is when the dollar goes down oil goes up. When the dollar goes up, oil goes down. It is that simple. Demand vs supply is another factor but not as big as the value of the dollar. The true value of our dollar determines what we pay for oil. If our dollar is worth .75, oil would go back up to its all time highs but if the dollar is worth say $1.13, then we pay less for oil. The best way to see this is on a chart. Look what the dollar was worth a few years ago and see what the barrel of oil was doing in the same time line.