Oil and the Weak Dollar

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.

Responding to my post this morning about gasoline prices, several people have asked why I didn’t say anything about the weakness of the dollar as a possible culprit. Answer: because the dollar isn’t especially weak right now, and in any case, the value of the dollar has only a slight effect on the global price of oil. Obviously a weak dollar makes all imports more expensive, so it does play a role in domestic prices, but as you can see from the chart below — where the dollar value is inverted and rescaled to show the relationship more clearly — the strength of the dollar has very little relationship to the price of oil. In 2007-08, the price of oil spiked from $60 to $140 while the dollar weakened only slightly. The recent spike began in November, while the dollar was strengthening. After that the dollar weakened a bit, then strengthened last month. It’s just not a big factor here.

Dear Reader,

This feels like the most important fundraising drive since I've been CEO of Mother Jones, with staggeringly high stakes and so much uncertainty. In "News Is Just Like Waste Management," I try to unpack the reality we all face and how we can rise to the challenge. If you're able to, this is a critical moment to support Mother Jones’ nonprofit journalism: We need to raise $400,000 to help cover the vital reporting projects we have planned, and right now is no time to pull back.

Monika Bauerlein, CEO, Mother Jones

Dear Reader,

This feels like the most important fundraising drive since I've been CEO of Mother Jones, with staggeringly high stakes and so much uncertainty. In "News Is Just Like Waste Management," I try to unpack the reality we all face and how we can rise to the challenge. If you're able to, this is a critical moment to support Mother Jones’ nonprofit journalism: We need to raise $400,000 to help cover the vital reporting projects we have planned, and right now is no time to pull back.

Monika Bauerlein, CEO, Mother Jones

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate