The short-term effect of the movement of the USD on oil prices

UNCW Author/Contributor (non-UNCW co-authors, if there are any, appear on document)
Lauren E. Wells (Creator)
The University of North Carolina Wilmington (UNCW )
Web Site:
William Sackley

Abstract: The effect of the changes in the US dollar (USD) on oil prices was examined in several trials. An indexed value of the USD and several individual currency exchange rates with the USD were compared to spot and future oil prices. The percentage change of each was taken from monthly averages and used to determine a direct correlation and if a lost in value of the US Dollar (USD) relates to greater fluctuations in the oil price. Results showed that the shortterm movement of the USD appeared to have very little to no effect on the oil price. The oil price also does not appear to have a greater amount of fluctuation due to a loss in value of the USD. If there is a correlation between the value of the US Dollar and the oil price, it must occur in the longterm to preserve purchasing power, but it is not a relevant factor in determining oil price in the shortterm.

Additional Information

A Thesis Submitted to the University of North Carolina Wilmington in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration
Language: English
Date: 2009
Petroleum products--Prices, Petroleum industry and trade--United States
Petroleum industry and trade -- United States
Petroleum products -- Prices

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