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global economics and oil barrel ?


Legion
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OK, I don't for one second understand global economics, but can some explain this to me.

 

prices of oil are measured in $$$ by the barrel

and recently (last 2 years) every month or so, we here how oil prices are now at $x per barrel, then at $xx and now we here that they are at an all time high of over $102 per barrel

 

I googled and in 2006 it was $76

 

now heres my sudden though...

 

we have been suffring price increases because of this so called increase in oil prices...

but is it not the case that in reality, the price of the $dollar has decreased over the past two years.

 

it was that a dollar was worth around 70p, now its worth around 50p and while this would mean that the US should see increase in the cost of obtaining oil from overseas what used to cost $70 should now cost them 20c more per dollar for every barrel making $14 extra.

 

so why is it, we see an increas in petrol costs greater than the US when our ? has remained stable ?

 

 

rip off britain again ?

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You are right...but we...the great British public.....aren't meant to know about things like that...now you understand why oil company profits are on the increase...as are government oil duty revenues.

 

Have to laugh...well not really, a couple of years ago OPEC said that they were aiming to keep oil in the range $30-$50...guess they just got greedy...mind you they must have suffered with the decline in the $. :wink:

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The Geary-Khamis dollar, also known as the international dollar , is a hypothetical unit of currency that has the same purchasing power that the U.S. dollar had in the United States at a given point in time. The year 1990 is often used as a benchmark year for comparisons that run through time.

 

It is based on the twin concepts of purchasing power parities (PPP) of currencies and the international average prices of commodities. It shows how much a local currency unit is worth within the country's borders. It is used to make comparisons both between countries and over time. For example, comparing per capita gross domestic product (GDP) of various countries in international dollars, rather than based simply on exchange rates, provides a more valid measure to compare standards of living. It was proposed by Roy C. Geary in 1958 and developed by Salem Hanna Khamis in 1970 to 1972.

 

The term, while not in widespread use, is sometimes used by international organizations such as the World Bank and the International Monetary Fund in their published statistics.

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