Who’s Driving the Price of Oil Up Part 2

Maybe the weak US dollar can explain the recent increase in the price of oil? If this is the case, then the price of oil measured in a stronger currency, such as for instance the euro, should remain roughly the same.

Let’s have a look at it:

From January 1, 2007 to May 1, 2008, the price of oil is up a stunning 86% in dollars. In the same period, the price rose 57%, measured in euros. From this we can deduce two things. First, the weak dollar is clearly an accomplice in the matter. However, we need to find another explanation for the remaining 57% increase measured in euros.

The biggest villain is still at large!

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