Interesting chart I found on the WSJ website late last week:
This chart compares Brent Crudethe oil used to make gasolineand the S&P 500. I wish I had the numbers going back further than this because it would be interesting to see the correlation over the years. I would think the correlation would be almost non-existent prior to oil’s massive runup in the early 2000s. All I know is that lately it seems as though when the stock market goes up, the price of oil goes up too. When the stock market drops, the price of oil drops. It almost looks as though the price of oil dictates where the market is going. I could be totally wrong on this (I’m not an analyst), but it’s what it looks like to me.
All this brings up a question:
Are high oil prices bad for the economy?