Wine prices may be a leading oil price indicator

$2 bottles of wine are now being sold at a couple Margaret River outlets while $5 bottles are easier to find. Supply and Demand folks !

I found a graph in a recent edition of The Economist that showed a correlation between the price of oil and fine wines.

I’m not sure if I can extrapolate this correlation to daily plonk but 1 litre of crude oil is still cheaper than $2 wine, however the wine is now cheaper than bottled water.

Aside from a long term view that I have about oil being able to rise considerably higher in the decade ahead, it may decline first, to match the cheaper prices that wine is commanding…..

note: 1 gallon of oil contains 159 litres.