...and this moves away from OPEC being the primary cause, how exactly?
Have you not looked at the historical trend. Surely, the dollar is contributing to prices today, but as I said and as you seemed to have not keyed in on and completely ignored, prices were rising before the value of the dollar was declining.
Did you not look at the inflation index? Energy cost increases have not been on target with inflation, they are much further ahead of inflation.
...but, the primary cause must still be inflation, correct? Clearly this proves that the primary cause is not the buying power of currency, but rather OPEC sees the decline of the dollar in comparison to the euro and is thinking of hopping ship before its too late. OPEC's talks are a result of a decline in market conditions in the US, oil prices are not a result of a decline in the US market but rather an increase in the consumption of foreign markets while production remains earmarked and limited by OPEC.
Why oh why do I even bother trying.
***edit - Since I feel I did an ineffective job of explaining the link between oil and inflation, that many have missed, I'll explicitly spell out the situation.
I'll go so far as to say, that the increase in oil prices are directly related to a rise in inflation; this is not the sole reason for inflation but surely a core cause of inflation. Increases in energy prices are passed down the market. The reason eggs have recently shot up in price is due to an increase in manufacturing costs. Manufacturing costs have increased because of the rising price of energy that is passed onto the cost to run machinery. Example, it may have once cost $1.00 to run that industrial machinery for 10minutes, whereas it now costs $2.00 for the same activity. Manufacturers are not going to absorb this cost, they are going to build this price into the cost of goods sold and the ultimate price paid by the consumer.
Furthermore, a push to alternative energy sources has driven agriculture prices through the roof (This might be a good area to look if you're thinking of investing your money in the market). Farmers are being paid more for their corn, as demand for ethanol as an energy source increases. Therefore farmers are opting to not grow other grains, like wheat, barley, etc. and turning to producing a greater amount of corn. This drives the price of other grains higher, as the supply decreases and therefore the demand increases. Its really no wonder why our food prices are much higher.
Factor in the cost of transportation, with increased energy costs directly associated with transportation costs, and you have prices that continue to rise as the price of oil rises. This is why many companies are turning to alternative sources of transportation such as the railroad. The railroad has dedicated about $10billion worth of capital into the furtherance of the railroad system in the country over the past 5 years, with much more money earmarked over the next 5-10years.
Thats the consolidated, in a nutshell version, of *ONE* of the reasons why we're feeling the effects of inflation.
This characterizes how OPEC's potential move is a result of the increased price they have already passed onto the United States. Therefore inflation was not originally a primary cause, but as the economy works, inflation has now snowballed into the equation and is helping to drive the prices higher.
