Petroleum Industry Dynamics
This course explores the relationship between oil prices and the US dollar (USD) exchange rate.
The objective of this course is to explore the relationship between oil prices and the U.S. dollar (USD) exchange rate. We lay out the history of the USD and its ascendency as the world’s reserve currency. An examination of the fundamental, economic and geopolitical forces that impact currency and oil markets will provide the basis for understanding the linkage between oil prices and the USD. The concept of oil as an asset class will be introduced and, more specifically, the adoption of oil as a financial instrument. The emphasis is not on proving or quantifying the dynamic relationship between oil prices and the USD exchange rate, but to understand the nature of the relationship and what factors may impact it in the years ahead.
In this course, we will:
- Explore:
- The History of US Currency
- Petrodollar Recycling
- Currency Exchange Rate Regimes
- Purchasing Power Parity
- The Translation Effect of Exchange Rate Movement
- Exchange Rate Drivers
- Oil Price Drivers
- Energy (Oil) as an Asset Class
- Financialization of Commodities
- Inverse Relationship Between Oil Prices and USD