Historical changes in US dollar exchange rate and real value of oil
- Marathon Oil Co., Midland, TX (United States)
Oil prices relative to world currencies are now at unprecedented lows, as shown by a price analysis that incorporates the effect of US dollar exchange rates on the value of oil. A commodity-based analysis corroborates this exchange-rate analysis. The value of oil today on world markets is even below its 1969 level (the nadir of the previous oil bust). The inflation-corrected price of oil (using the producer price index) in the US has increased 130% since 1969. However, the US dollar has lost over 40% of its value relative to G-7 currencies since abandonment of the Bretton Woods agreement in 1971. Therefore, the real value of oil an international markets is 20% below its 1969 level. Since 1988 alone, the dollar has lost 16% relative to the G-7 currencies. Oil producing countries are taking extreme revenue cuts caused by the eroding US dollar.
- OSTI ID:
- 425514
- Report Number(s):
- CONF-960527-; TRN: 96:004994-0147
- Resource Relation:
- Conference: Annual convention of the American Association of Petroleum Geologists, Inc. and the Society for Sedimentary Geology: global exploration and geotechnology, San Diego, CA (United States), 19-22 May 1996; Other Information: PBD: 1996; Related Information: Is Part Of 1996 AAPG annual convention. Volume 5; PB: 231 p.
- Country of Publication:
- United States
- Language:
- English
Similar Records
Changes in exchange rates and oil prices for Saudi Arabia and other OPEC members
Proposed currency composite approach to pricing OPEC oil: problems and possibilities