The Oil Drum

61 comments on European gas supplies and a more than gentle cough from Russia

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BrianT on April 25, 2006 - 10:22am

If the US dollar had kept pace with the Cdn dollar since 2002, oil would be priced at $50 right now.

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Dragonfly41 on April 25, 2006 - 10:44am

Has anyone plotted the relationship of the value of the US dollar against oil and gold. How strong is that inverse relationship?

Today, I've seen oil prices inch up as the value of the US dollar has dropped and reverse that trend as the US dollar regained some value.

Who's the chicken and who's the egg here?

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BrianT on April 25, 2006 - 11:11am

The chicken is the demand/supply oil situation. The egg is the USA's horrendous fiscal and trade situation.Or vice versa-it is a mess.

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Alaskan Pete on April 25, 2006 - 11:15am

What you really want to plot is oil:USD on one chart and oil: oz gold on the other chart. Gold is money. Comparing it to other paper fiat currencies (i.e. not backed by gold or silver) is to bring in the vagaries of that specific country. I.e. with AUD, you have the large current account deficit, same with NZD. I don't know how to format here to insert an image, but here's a link to oil:gold chart for the last 3 years. http://stockcharts.com/c-sc/sc?s=$WTIC:$GOLD&p=W&yr=3&mn=0&dy=0&id=t31084408462& amp;r=4249 As you can see from the chart, oil is rising even vs. gold.

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Alaskan Pete on April 25, 2006 - 11:17am

What you really want to plot is oil:USD on one chart and oil: oz gold on the other chart. Gold is money. Comparing it to other paper fiat currencies (i.e. not backed by gold or silver) is to bring in the vagaries of that specific country. I.e. with AUD, you have the large current account deficit, same with NZD.

I don't know how to format here to insert an image, but here's a link to oil:gold chart for the last 3 years.

http://stockcharts.com/c-sc/sc?s=$WTIC:$GOLD&p=W&yr=3&mn=0&dy=0&id=t31084408462& amp;r=4249

As you can see from the chart, oil is rising even vs. gold.

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