By James McKee
From bakers to lawyers to everything in-between, everyone needs oil. The rise and fall in the price of oil not only affects the price of gasoline but the price of transporting goods, to that end it increases the cost of everything. No good can be moved without factoring in the cost of gasoline and thus the cost of crude oil. With the price of oil topping $103.00 a barrel there are looming changes due throughout all western countries. Prices in the United States are sure to rise causing a decrease in purchases and an increase in scarcity as companies begin to match production to purchases.
The USD will suffer due to an increase in prices occurring at the same as rampant inflation in the US brought on by moves at the Federal Reserve Bank. The recent round of quantitative easing has served to prop up the stock market and thus the USD but in time inflation will take hold. Much of the price increases have been a direct result of the conflict in Egypt that does not show any sign of slowing down. The fact that President Obama is showing support to both revolutionaries and those currently in power does serve US foreign relations well.
Those involved with the Forex currency exchange should stay up to date on both the price of oil and the conflict currently going on in Egypt. Chances are that in the near future Egypt will see even more violence since the current regime’s supporters are taking to the streets violently. Reports of Molotov cocktails being hurled at protestors are commonplace and it is only a matter of time before both sides become increasingly violent. While the stock market just begins to recover from the initial shock of the Egypt conflict it is far from over and Syria is degenerating into a similar state.
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.