The fluctuating value of the dollar makes it very hard to gauge whether oil prices themselves are rising or falling. Oil today, measured in gold at 1.5 grams per barrel is cheaper than it was in the early 1950’s. See why...
Read more
If you measure the price oil in US dollars, over the last 72 years, you would get the impression that it is about 30 times more expensive today!
The fluctuating value of the dollar makes it very hard to gauge whether oil prices themselves are rising or falling. Oil today, measured in gold at 1.5 grams per barrel is cheaper than it was in the early 1950’s.
As you can see in the long term chart, oil is a volatile commodity, with its price swinging wildly in a range from less than 1 gram per barrel to almost 5 grams per barrel. But this chart also shows that these oscillations are part of a sideways price movement centered around 2.5 grams per barrel. Crude's current price around 1.5 grams is quite a bit below its historical average.