THE US$

Interesting article on the US Dollar in the LA Times.

Resurgent dollar slams Americans' foreign stock holdings
The once-struggling U.S. dollar suddenly is the strongman of the world’s major currencies. That’s great for Americans’ purchasing power -- but if you’ve noticed, it’s a heavy blow to the foreign stock holdings in your portfolio.

Takeaway:
As the Dollar strengthens foreign holdings are reduced in value upon currency conversion. People/investors appear to be buying US Dollars to invest in safer US based investments.

As the Dollar becomes more in demand its value increases and commodities priced in Dollars become cheaper for people using the US$. This may be part of the reason oil has been dropping. The current price of NYMEX oil can be found on Bloomberg

Hostilities between Russia and the Republic of Georgia may halt or reverse the recent price drops if tensions further increase. Keep a close eye on the situation for signs of further escalation.

RUSSIA VS GEORGIA

There are currently military hostilities between Russia and the Republic of Georgia.

Why is this important?

There is a major oil pipeline in Georgia that transports "1.2 million barrels a day." There are reports that Russia has attacked the pipeline.

"Azerbaijan, which borders Georgia, announced Saturday it had halted oil exports via the Georgian ports of Batumi and Kulevi due to the fighting between Georgia and Russia."

Bloomberg has the Nymex Crude Future at $116.40 [retrieved Sunday 8/10/08]

If the hostilities reduce the world oil supply the price of oil, which has been steadily falling, may begin to climb upwards as a result of new tensions, hostilities and uncertainties.

Where do you think oil prices will be in a week, month, and 60 days?