As oil prices are based on the dollar which is falling how come petrol and oil prices are rising!!!! how come?

When the Dollar is high every thing we buy in Dollars costs more so as the Dollar is low to us living in the Uk how comes the oil price


oh i do know there is a war going onAs oil prices are based on the dollar which is falling how come petrol and oil prices are rising!!!! how come?
As the value of the dollar goes down, the number of dollars it takes to buy a barrel of oil goes up. It's relative.





For instance, if the value of the dollar is halved today, it'd take twice the number of dollars to buy the same barrel of oil as it did yesterday, assuming that the actual value of oil hasn't changed.





However, if the value of oil itself goes up whilst the value of the dollar goes down, the rate at which the price of oil in dollars seems to rise would seem disproportionate to the rate at which the dollar is falling.As oil prices are based on the dollar which is falling how come petrol and oil prices are rising!!!! how come?
it the art of decievement, fool the public that the war for oil in iraq was not about oil , only the ppl who control the flow are making trillions and sure ain't the iraqi's
Because not everything is determined by cost.





You are right to say that most oil is traded in US$, and since US$ has been falling with respect to the pound then in pounds the price of petrol should drop.





However, the price of crude oil is rising. The increase in the dollar price of oil is larger than the decrease in value of the dollar with respect to the pound. So, even in terms of pounds, the price of oil is rising.





Now, why are oil prices increasing. Personally I think it's because people are simply taking advantage of the situation to make a killing.





Think about it, the 'reason' given is the threat to the pipelibne via Turkey due to PKK activities. People are afraid the pipeline will be threatened, decreasing supply of oil hence pushing prices up. SO they buy now, and prices go up.





Another reason given is the fact that China and India are demanding more oil. That's true, but it's also true that they have been looking for and using non-traditional sources of oil; so this impact isn't as large as you would believe. Things in India would be much better if the pipeline from the Caucasus through Afghanistan was built, but given who controls Afghanistan nowadays... (Note that the Taleban did try to get the pipeline built during their time, only to be turned away by the contractors).





However, remember that today Iraq is free to sell oil. Gone are the days of restricted Iraqi supply under oil-for-food.





Furthermore, safety is quite high in the gulf for tankers now. So alternate routes to teh pipeline through Turkey exist.





I think supply is good, although demand is rising it hasn't risen fast enough to account for the spike in oil prices. I think it's simply traders making a big buck on the back of the fear of people, price manipulation.