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?