[andy58-in-nh]

It's not only supply and demand, but pricing, too. Oil is priced in dollars and inversely correlated:

[meyer]

It's not only supply and demand, but pricing, too. Oil is priced in dollars and inversely correlated...

It's both supply/demand and the dwindling dollar. The effect of a weakening dollar is probably a larger issue than overall supply at this time. BUT - but, that is because a substantially large part of our supply comes from foreign countries. Raising the proportion of our own supply vs. foreign supply would reduce the effect of our weakening dollar on overall oil prices. It would also reduce the leverage that entities like OPEC have on our supply.