Things in the Sky

It’s been a while since I last whipped out the oil graph…so why not. The price data from the EIA goes up to Tuesday this week.

(Click to enlarge.)

So, oil has certainly recovered from its lows and has be testing the $80 level, which isn’t exactly good news for the airlines.

But what I always find more interesting is the price of oil in euros. Oil is priced in dollars, so it’s assumed that as the dollar depreciates against other currencies oil would go up in dollars. And that seems to be the case. Note how the two prices came very close at the end of last year when investors were seeking safety in the U.S., boosting the dollar, but now the dollar is losing value again. As a result, the gap between the two prices is now increasing.