Oil Wager: three years

Posted on December 05, 2008 by Steve

On the third anniversary of the wager, the numbers are in my favor: a barrel of light sweet crude costs noticeably less than the 19.2 Big Macs which matched it in value on December 1, 2005.



Here are the annual figures so far:

OilBig Macratio
12/1/2005$58.75$3.06 19.20
12/1/200663.433.1020.46
12/3/200789.313.4126.19
12/1/200849.283.5713.80


With this level of volatility, ten years is probably the very minimum term in which any kind of long-range trend will be visible. For perspective, here's the chart showing how far we have to go.




Sources:
http://www.economist.com/markets/bigmac/
http://www.eia.doe.gov/emeu/international/crude2.html