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October 6, 2008 9:36:49 AM CDT

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Oil-Price Surge Fuels Global Investing Binge

Posted Nov 28, 07 2:18 PM CST in Business,  World 

(Newser) – Petrodollars have fueled an investing binge in companies ranging from chipmaker AMD to private-equity giant Carlyle Group to Citigroup. And, with nearly $5 billion in oil revenue gushing weekly into Persian Gulf nations, the spree won’t likely slow, the New York Times reports. “The oil-producing countries simply cannot absorb the amount of wealth they are generating,” one observer said.

Profits for oil-producing OPEC nations surged from $243 billion in 2000 to $688 billion in 2007, not including the past two months of record sales. Petrodollars flooded into the US, but increasingly the weak dollar and political concerns are pushing more overseas. It’s a shift “of historic dimensions,” experts say, and it’s helped the world economy by keeping interest rates low.

Source New York Times

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Advance Micro Devices CEO Hector Ruiz gestures at Oracle World Conference in San Francisco, Monday, Nov. 12, 2007. With oil prices surging and U.S. stock prices slumping, chip maker AMD Inc.'s sale of...   (Associated Press)
People pass a Citibank office on Tuesday, Nov. 27, 2007 in New York. The Abu Dhabi Investment Authority will invest $7.5 billion in Citigroup, offering the nation's largest bank needed capital to offset...   (Associated Press)
Bruce Rosenblum, managing director, The Carlyle Group, right, testifies on Capitol Hill in Washington, Tuesday, July 31, 2007, before the Senate Finance Committee hearing on taxing the profits of hedge...   (Associated Press)
Drilling for oil in Kuwait.   (Magnum Photos)
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oil price  • oil  • crude oil  • OPEC  • Abu Dhabi  • Dubai  • petrodollar


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