Friday, February 26, 2021

Balancing the petrodollar

 

The USA is neutral to the oil deficit. That is because we are on the petrodollar standard. 

The dollar is now stable, if we are on the petrodollar standard then oil is fair priced. 

The ten year rate hike stabilized the dollar meaning an oil producer is relatively indifferent , on average, to earning the ten year rate or investing in oil production.


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