À propos the post Euan put up last July on Oil prices, Jean Laherrère sent The Oil Drum two interesting graphs on the relationship between the common currency and Oil. These charts show very similar patterns in the rise of both Oil and the €uro against the Dollar, a clear sign that the record 147 $/barrel had much to do with the weakness of the greenback. Even after the economic crisis, this relationship seems to hold.

While the Oil price has definitely risen against the €uro these past few years, it has done so in a much less volatile fashion.

It is also interesting to note that since 2007 the correlation is stronger and since then the €uro seems to precede Oil by a month or so in its movements against the Dollar.