>>1) Oil is priced in Dollars.
2) The Dollar is still losing value
3) Therefore, the cost of oil in Dollars goes up, even if the value of oil remains constant.<<
Yup. That’s my take as well. It is simple inlfation at work. I suspect that is also part of the reason for the current stock prices.
The only non-catastrophic way out of the housing/credit bubble is to monetize the whole thing through inflation. It is apparently happening as we speak.
Then why has the price of oil changed 4 times as much as the change in dollar value for the past year?