Oil And Dollar And Its Movement In Near Future

Presented by : Raman Kumar Ravi Kumar Ravi Datt Richa Garg

Dollar
 The standard monetary unit of the US

and its dependencies, divided into 100 cents

The word 'dollar' itself derives from the Flemish or Low German word daler Adopted as the name of the US currency unit in the late 18th century In 1929, investors began trading in currencies

USDX  This index started in 1973 with a base of 100 This index is calculated by exchange rates of six major world currencies Euro Japanese yen Canadian dollar British pound Swedish krona Swiss franc  .US Dollar Index .

Current Exchange rates with Dollar American Dollar 1 USD(As on 10/7/2011) Euro Indian Rupee Japanese Yen British Pound Aus Dollar Source : moneycontrol.6500 0.6437 0.7440 49.1450 76.com 0.9789 .

S.org . Present Value & Future Projection Source : www.forecasts. Dollar Currency Exchange Rate Past Trend.India Rupee Per U.

demand for the euro increases As the dollar loses value. investors are less likely to hold assets in dollars as they wait for the decline to stop. which would slow economic growth As more countries join or trade with the European Union. debt is over $14 trillion The large debt could force the U.   .Dollar Is Losing Value Over the Longterm   The U.S. to raise taxes to pay it off.S.

plastics for toys. lubricants for all kinds of machines. trucks. boats and trains Also used for a wide variety of other products including asphalt for roads. food wrap and computers. airplanes.Crude Oil  Naturally occurring liquid composed mostly of hydrogen and carbon Usually found underground but can also be found above ground in oil seeps or tar pits Produce fuel for cars. bottles. It was traded as a commodity in 1981     .

4 2.Top World Oil Net Importers (Million Barrels Per Day) Rank Country Year 2010 Year 2009 Year 2008 1.3 2.8 4. 2.3 2.3 4.2 9.com/2011/06/worlds-top-6-net-oil-importe . United States China Japan Germany India South Korea 9.blogspot. 6. 4.2 2.0 3. 3.2 2.3 2.6 2.9 4.6 4.1 11.1 Source : http://petroleuminsights.1 2. 5.3 2.6 4.

gov/library/publications/the-world-factbook/rankorder/ .cia.3 2.1 2. 4.1 Source : https://www.6 2. 6. 3.5 2. Russia Iran United Arab Emirates 7.Top World Oil Net Exporters (Million Barrels Per Day) Rank 1.3 5. European Union Norway 2. Country Saudi Arabia Year 2009 7.

forecasts.org/oil.htm .Crude Oil Prices Past Trend Present Value & Future Projection (US Dollars per barrel) Source : www.

5%) in 2010. which rose by almost 700.000 bpd  non-OPEC oil production is expected to record another year of solid growth in 2011 The cover provided by oil inventories fell from 74 days’ worth of forward demand less than 70 days at the start of 2011  .000 bpd (1. is expected to stagnate again in 2011 Outside the OECD region. Global oil inventories were drawn down at an average rate of almost 630.Oil price forecast Oil Demand  Global oil demand growth in 2011 is expected to be less than half that seen in 2010  OECD oil demand. demand is also likely to be more muted than it was in 2010  Oil Production  Last year.

from $65 a barrel to $120 During the same period. the dollar fell by 15% relative to the euro and 12% against the yen  .The Dollar and the Price of Oil  The rapid rise in the price of oil and the sharp depreciation of the dollar are two of the most noteworthy developments of the past year  The price of oil has increased by 85% over the past 12 months.

 Since the dollar has fallen relative to the euro. because the increasing cost of oil imports widens the United States’ trade deficit   . this would have contained the rise in the price of oil The rate of increase of the price of oil in Euros during the past year was lower than the rate of increase in dollars The high and rising price of oil does contribute to the decline of the dollar.

Relation between oil and dollar .

Kuwait.Organization of Petroleum Exporting Counties (OPEC)  Intergovernmental organization of twelve developing countries Founded in Baghdad   Founded by five countries in September 1960 by Iran. Saudi Arabia and Venezuela OPEC headquarters in Vienna Hosts regular meetings    Ensuring the stabilization of prices . Iraq.

economic and regular supply of petroleum to consuming nations And a fair return on capital to those investing in the industry.Objective of OPEC  To co-ordinate and unify petroleum policies among Member Countries To secure fair and stable prices for petroleum producers An efficient.    .

Member Countries Country Algeria Angola Ecuador Africa Africa South America Region 1969 2007 2007 Joined OPEC Iran Iraq Kuwait Libya Nigeria Qatar Saudi Arabia Middle East Middle East Middle East Africa Africa Middle East Middle East 1960 1960 1960 1962 1971 1961 1960 United Arab Emirates Venezuela Middle East South America 1967 1960 .

45 on the New York Mercantile Exchange after the Labour Department said employers stopped adding jobs in July Oil below $82 on stronger dollar. 2011)  Benchmark crude fell $2.  German lawmakers took a major step toward dealing with Europe's debt crisis  .48. to finish at $86.Recent Development Oil down nearly 3% on jobs report.8 per cent. growth concerns (Sep30. or 2. 2011) As the dollar strengthened and doubts remained about the resiliency of the economic recovery and Europe's struggle with its debt crisis. dollar (Sep3.

9 million barrels per day and on track to hit 3. likely defense buying drags (Oct7. 2011) The rupee climbed down from its early high  At 3 p.  In Iraq.0 million bpd by the end of the year  Rupee off highs.61 a barrel.577 points from 79. stronger from Wednesday's close of 49.m. strong dollar (Oct3. the partially convertible rupee was at 49.34/35  The index of the dollar against six major currencies was at 78. the lowest price since the end of September 2010.Crude oil prices slip on slow growth.057 previously  . oil ministry spokesman Assem Jihad said crude output is now 2. 2011) Friday's close to $77..17/18 per dollar.

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