The Small Cap Epicenter
Posted by: MarkBroom on July 16, 2008 12:23PM
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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