.png)
BC-The-World’s-Oil-Buyers-Are-Being-Crushed-by-a-Surging-Dollar , Alex Longley (Bloomberg) — Brent oil has dropped more than 30% from this year’s high, but you wouldn’t know it if you live in Paris, Mumbai or Accra. The decline in the global oil benchmark from nearly $128 a barrel has dovetailed with a jump in the dollar of about 15% over the same period. That means fuel prices remain a significant factor driving up the cost of living across most of the world. Oil-demand powerhouses like China, India and the European Union have all seen smaller real-term declines in crude prices than benchmarks would suggest. And for some emerging markets like Sri Lanka, the impact of a spiraling oil price and collapsing currency has already shown up in the form of near-total economic collapse. “A stronger dollar is a headwind for oil consumer nations whose currencies are not linked to the greenback,” said Giovanni Staunovo, commodity analyst at UBS Group AG. “Over the last 12 months, oil prices have increased much more in local currency terms.” There’s no easy fix. Lifting interest rates to bolster currencies risks slowing already-fragile economies, while developing countries need to keep an eye on dollar reserves. Euro-zone countries are highly dependent […]
CamTrader offers a preview only. View original article. www.bnnbloomberg.ca
