Comparing Crude Oil Price Trends Across 10 Currencies

Here is what happens when you leave Paul alone on a plane with laptop, and historical currency and crude oil data: You get a giant longitudinal comparison of recent crude oil price trends across ten major currencies.

In essence, I normalize everything to four years ago, all the while converting to the U.S. dollar using the then exchange rate to the currency in question. The result: You see how current crude price increases are, in part, an artifact of the collapsing U.S. dollar.

Here is the four-year figure (click on it for a larger version):

And here is the one-year trend broken out (click on it for a larger version):

Comments

[Dawson Lodge]

Pretty interesting.. Since Canada such a big producer, they've got a nice built in hedge there. For my taste,
I'd like to see it with the little (trade weighted) currencies left out, and be curious to see gold in there (it's a 'currency' too). As a matter of fact, I see a pretty good pattern correlation between oil & gold lately anyway. If Saudi and Iran are linking to gold and Euro, would make sense for them. bst rgds-

[PhilipM]

I'd be curious to see how this continues to the recent high of US$126. There has been an increase over the last 12 months of your data however you look at it.