European newspapers keep quoting oil in US Dollars. It does not make any sense.
Oil is up about 57% in US Dollars since early 2007. So, they panic. It is stupid!
Their currency is the Euro, which appreciated about 30% relative to the US Dollars in the same period. It does not take a genius to figure out that oil in Euros is up only 27% in the same period.
I agree, it is a big rise, but certainly not as much as for us US citizens owning the US Dollar.
By the way, this is one of the many advantages of having a strong currency like the Euro. Commodities costs much less in Euros because commodities are quoted in US Dollars.
More, much more on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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