The Price of Fuel

This morning I was talking with a friend  and the price of fuel came up.  He mentioned he did not understand why the price of fuel was staying so high.

That is a common voice of concern for the majority the world these days and I believe there are several factors that cause the price of crude oil to be at the current price.

There is no doubt in my mind that to some extent there is market manipulation to a degree, there are also issues with unrest in oil-producing nations which drives up the cost.

The main reason in  my opinion is because our economy is in the tank and the faith the world has(had) in our currency is not what it once was. The best way for us to see lower fuel prices is to decrease our inflation and increase the value of the American Dollar.

The world trades crude oil in US Dollars and so long as our dollar is not worth the value it once was,  those that sell oil have to increase the price to make the same amount of profit per barrel  they once did. How sad is it to realize that our currency trades at nearly a 5 to 1 value with a country we saved from oblivion in the early 90’s namely Kuwait. In many of my many visits there I have had to change US Dollars to the Kuwaiti Denar, the typical trade at a bank cost me 4.80 us dollars to get one of their dollars. I was embarrassed to realize how terrible our economy has become.

The fact our currency trades at such a low value is humiliating, in times past when our economy was much healthier, it was not uncommon to hear someone say foreign currency was treated like monopoly money, that is no longer the case.

I want to make it clear that the value of  our currency is not the only issue that can contribute to higher oil prices but in the past few years I believe it has been the primary contributor to those high prices.

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