A long time ago on a blog far away, I posted a graph showing the oil price in euros. The resulting trace looked rather different from the conventional US$ measure.
With that blog dead, several years passed, and another round of ‘oooh, isn’t oil expensive’ fussing currently taking place, I thought it might be a good idea to update and repost…
So the situation has changed a bit since 2005: at the time, taking euros as a base, it looked like the rise in dollar prices could be classed as more of a reflection of the US’s economic position than of the true cost of oil.
This year, it’s entirely clear that oil prices have risen dramatically and will keep rising, despite the US$ also being entirely up the creek. Although the epic rises of the last few days most likely do owe more to the dollar’s flailing collapse.