Oil and inflation

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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MarkBroom

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Oil and inflation

posted on Jul 16, 2008 08:23AM

Heres an interesting paradox.

In the year 2000 the euro per dollar exchange rate was:

1.20 Eu to 1 $

The price of oil per barrel at the time was $60 which translates to 72 Euros

In May 2008 1 $ us = 0.60 Eu

A barrel of oil was going for $115 dollars at the time

Thus 1 barrel= 72.45 Euros

That means that oil in real terms appreciated by 45 cents Euro (less than a dollar)

Can somebody explain why Europeans are paying 4 times the price in May 2008 than in May 2000?

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