As we’re all constantly being told, the oil price has rocketed since the whole War on Terror/bombing-the-Middle-East thing kicked off. It’s worth remembering that much of this price rise is fictional.
The red line in the chart below shows the price of oil in US$; the blue line shows the price in euros. As you can see, the difference is striking. Measured in dollars, oil prices have risen 89% since January 2000. Measured in euros, they have risen just 50%. The contrast is even sharper since the beginning of 2003: dollar oil prices are up 44%, while euro prices are up just 15%.
In other words, oil prices appear to be rising far more than they really are because of the magical collapsing dollar. This is a helpful illusion for the US administration: they can pretend to Americans that oil is more expensive at the pumps because of complicated geopolitical issues, rather than because the value of a dollar has fallen 39% since the President’s inauguration.