Oil is ofter reffered to as “black gold”. This page is about the past 10 years of the unprocessed form of crude light oil which is traded worldwide in the unit of bbl (1 US bbl oil = 158.99 l) and in the currency of USD.
Crude oil’s 10 year history covers the entire financial crysis and 1-2 years preceeding it. Oil’s price peaked before the crysis above $140 per barrel, however, it has reached a new low below $30 recently. Maybe negative trends have ended.
(Prices are in US dollars)
You can find other oil charts from intraday up to 3 year here.
People often say that long term investments carry less risk than short term ones.
As you can see, in case of oil this is just partially true. Oil has yielded nice long term returns until 2-3 years ago, but after that long term return has started to decrease recently – just like its price:
What can you see on this chart?
You can calculate oil’s 1 month return from oil’s price today and oil’s price 30 days ago. You can also do the same calculation for yesterday and oil’s price 31 days ago etc. If you do this calculation for each days, you will get a curve of oil’s 1 month yield. The same applies to other yield periods from three months to five ears.
This chart shows each yield curve in the past 10 years. It helps you to highlight how stable profits were.
As you can see, oil price hasn’t always outperformed the change of US CPI in the past 10 years. There were times when oil’s price increased a lot faster than CPI, however, when oil price started to decrease, it also happen very rapidly, far below the change of customer price index:
*charts have been created by using Chartoasis Sesame. If you feel like analyzing oil’s historical prices, you can do that for free at www.chartoasis.com/sesame .