Gasoline vs. Crude Oil Correlation 2005 – Feb 2008
This entry was posted on Monday, March 17th, 2008 at 3:00 pm and is filed under oil. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
JR, many thanks for maintaining this site and updating this plot. FYI, I have used this plot in my college teaching (mineral resources classes, both undergraduate and graduate). It is to my knowledge the only plot of this nature, as I have looked fairly hard for similar work on the internet. This seemingly simple plot shows many interesting features, which I’m sure you are also aware of, and it has predictive capability.
Mahalos and regards,
I would like to see a plot of the change in crude price vs the change in oil price. I’ll bet that there is a strong correlation when crude goes up, but a much weaker correlation when crude goes down.
10/10/08 Posting this as all markets are crashing. Reflecting Bob’s comment, really would like to see this data as some sort of time series. Putting dates on data would be helpful, but messy on such a small web plot. Can you make the data available (assuming its in some sort of spread sheet) for others to analyze? Very interesting. Thank you.
The data is all available in spreadsheet form from the EIA.
I might add a time series version the next time I update this one. Maybe early bext year, unless gasoline moves above $4 sooner than that. For now we are simply retracing old history. That’s the purpose of the correlation chart.
I did this time series chart of gasoline vs. crude oil in April:
THanks for the plot. Very helpful. Are the X and Y axis labels reversed?
Beware, this is a spurrious regression. R-sqared values etc will be high when calculated but entirely meaningless. What is being discussed here is in fact not correlation but cointegration. Correlation is the relationship between the differenced closing prices. Cointegration is the long run relationship. Correlation cannot be performed on non-stationary (unit root) time series.
I wrote a blog about crude oil and gasoline prices (vs. time, however). Please check it out:
crude oil price history graph…
[…]Gasoline vs. Crude Oil Correlation 2005 – Feb 2008 « Crude Oil[…]…
Hey there! Someone in my Myspace group shared
this site with us so I came to look it over. I’m definitely loving the information. I’m bookmarking and will be tweeting this to my followers!
Great blog and brilliant design.
Good info. Lucky me I came across your site by chance (stumbleupon).
I have saved as a favorite for later!
Hey there just wanted to give you a quick heads up and let you know
a few of the pictures aren’t loading properly.
I’m not sure why but I think its a linking issue.
I’ve tried it in two different browsers and both show
the same results.
Your calorie intake goes hand in hand with your body weight.
If the your body fat is above 25% but below 30% (Women) or above 20% but below 25% ( Men) then you are overweight, you are carrying more fat around than
you need or that is healthy for you and it probably means you are
eating too much of the wrong foods. That is why you only need to follow the
above guidelines 90% of the time, which allows for 4-5 cheat meals per week.
You know, the type that is cooked so perfectly that the meat just falls off the bone and
melts in your mouth with an explosion of flavors. The most common form of barbecue smoker,
an offset smoker features two chambers – a fire box, which creates smoke, and an adjoining chamber where the
food is cooked. Make two piles of charcoal on opposite sides
of the aluminum pan.
It’s actually a cool and helpful piece of information.
I’m glad that you shared this useful info with us. Please keep us informed like this.
Thank you for sharing.
Fill in your details below or click an icon to log in:
You are commenting using your WordPress.com account.
( Log Out /
You are commenting using your Google+ account.
( Log Out /
You are commenting using your Twitter account.
( Log Out /
You are commenting using your Facebook account.
( Log Out /
Connecting to %s
Notify me of new comments via email.
Create a free website or blog at WordPress.com.