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To: Sarmad Y. Hermiz who wrote (41507)	2/20/1999 7:48:00 PM
From: Bill Harmond	Respond to of 164684

Sarmad, Oil is priced globally in US Dollars, so the strength of the dollar doesn't affect the price we pay. It certainly affects the price others pay in local curriencies, though. As their currencies have taken hits the price of oil has gone up tremendously for them, adding to their recessionary forces. That lowers demand, which causes the oil price to decline in dollars. Secondly, the OPEC countries need money more than ever, and all of them are overproducing, adding to the supply which causes the price to decline further. To make matters more complex, more oil is being discovered now than ever. Because of advancements in technology it costs on average only about $6 per barrel to find new supply.