The closing price for oil today was $126.46 per barrel. Suppose the dollar was devalued by 25%, the price of oil would almost immediately go up to $168.61 per barrel; however, the price in Euro’s should remain essentially the same as the Euro’s per dollar would go from today’s exchange price of .644 to .483. To plot the price of oil vs: the devaluation of the dollar and point out the correlation is redundant. The price of oil though in nearly every currency has increased so you can’t place the blame on the devaluation of the dollar. The price increase at the pump for the American consumer in percent terms might be more dramatic than for Europeans or Canadians but everyone is experiencing the trauma! Demand has exceeded supply and until this comes back into balance the real price of oil will continue to increase!

Martin