It is of course illogical maths, though no one would be willing to upset him in public by saying so.
Since they, officially, blame the dollar’s decline alone, they have to say that a $1 change in the dollar will lead to a much large change in the oil price.
The reality is that they are constricting supply and the D/S situation will only improve for us by people cutting consumption (as is stating now in the US with declining gas consumption).
There is an alternative explanation. Since most of oil producers reserves are held in dollars and their currencies are linked to the dollar and suffer the same imported commodity price inflation as in the US, they need a four to one change to keep the purchasing power of their countries constant…so they restrict supply to that end. Wouldn’t put that past them.
