Comments on: Democrats and Oil http://www.poligazette.com/2008/05/22/democrats-and-oil/ News and Analysis from Different Moderate Perspectives Sat, 22 Nov 2008 10:49:40 +0000 http://wordpress.org/?v=2.6.2 By: Jay_C http://www.poligazette.com/2008/05/22/democrats-and-oil/#comment-51977 Jay_C Sat, 24 May 2008 01:32:29 +0000 http://poligazette.com/2008/05/22/democrats-and-oil/#comment-51977 "Prices of a commodity are based on cost of production and demand, not moral relativism about the benefit of the product to its users." 99% of what you are saying is true, but the real root cause of the price increase is the depreciation of the dollar.  Sure, energy prices have risen, regardless of the currency / country.  In Europe, the price of oil increased 50 euros in the past five years. It now stands at approx. 75 euros per barrel, 3X what it was then. But in the U.S., oil has risen to over $120 per barrel, now about 5X what it was then.The reason for this enormous difference is the depreciation of the dollar against the euro. "Prices of a commodity are based on cost of production and demand, not moral relativism about the benefit of the product to its users."

99% of what you are saying is true, but the real root cause of the price increase is the depreciation of the dollar.  Sure, energy prices have risen, regardless of the currency / country.  In Europe, the price of oil increased 50 euros in the past five years. It now stands at approx. 75 euros per barrel, 3X what it was then. But in the U.S., oil has risen to over $120 per barrel, now about 5X what it was then.The reason for this enormous difference is the depreciation of the dollar against the euro.

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