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Exxon: It’s Not Demand That’s Driving Oil Prices Up–It’s The Dollar
Courtesy of Jay Yarow at ClusterStock
Exxon CEO Rex Tillerson says a weakened dollar, not an increase in demand is the reason for the sharp run up in the price of oil.
Bloomberg: “When you look at just fundamentals, there’s not a lot to support the kind of price movement we have seen, let’s say, in the last six weeks,” Tillerson, head of the world’s biggest oil company, said after a speech today at a gas conference in Groningen, Netherlands. Concerns about a weakening dollar and inflation had led some investors to bet on an economic recovery and try to get ahead of a rally, he said.
…“Demand has not picked up,” Tillerson said. “Demand continues to be relatively flat or down, and inventory levels are still very high around the world, including floating inventory levels,” he said.