http://www.morganstanley.com/GEFdata/digests/20051128-mon.html
``As disruptive as they have been, the oil shocks of the past have all had a silver lining: A significant portion of the revenue windfall accruing to oil producers -- especially those in the Middle East -- has been recycled back into dollar-denominated assets. In earlier oil shocks, the flows associated with these “petro-dollars” have been sizable enough to have contained the damage to US interest rates and to the interest-rate-sensitive components of the US economy. The energy shock of 2005 is different.
Ira Glazer wrote:
> http://news.ft.com/cms/s/77b20934-64ee-11da-8cff-0000779e2340.html
> Published: December 4 2005 21:50
>
> Are high oil prices good for the dollar? Short-term, a rise in the
> crude price can be positive for the greenback, since all importing
> countries must purchase dollars to pay for oil. The longer-term impact
> will be determined by the investment behaviour of exporting nations.
>