THE RISE AND FALL

THE RISE AND FALL Of our oil and how it affects the dollarWhat is Crude oil?

Crude oil is a natural liquid found inside the earth that consists of hydrocarbons and compounds such as nitrogen, oxygen and sulfur. The oil is extracted from the ground and refined to produce gasoline, diesel and many other forms of petrochemicalsYearPrice per barrel (USD)12005 $50.5922006$61.0032007$69.0442008$94.1052009$60.8662010$77.3672011$107.4682012$109.4592013$105.87102014$96.29112015 (as of March)$49.22The cost of oil fluctuated throughout the years. When the oil is high in demand, the price per barrel is more expensive and vice versa. Today, the price per barrel is as low as $49.22 USD which is lower at what we were in 2005.The following formula is a cubic functionY= -.40181623931626x^3 + 5.7828088578094x^2 + -15.917041569545x + 68.726818181825I chose a cubic regression to show the trend of the oil per barrel. The reason for this is because it shows that the price varies throughout the years. From 2005, the oil steadily increase and dropped in 2009 due to the recession. The price continue to climb and dramatically dropped again in 2015. With the trend of the oil as of today, the oil is on a downward trajectory which can eventually end in zero. Realistically I dont think that could ever happen and the price of oil will slowly creep up again. With the price of crude oil falling, it affects our economy in many different ways such as our dollar value will suffer, jobs will be lost and itll hit the housing market. The Price of oil 2005-2015Price per barrel

monthsCanadian dollar Currency rateyearCompared to USD120050.83220060.88320070.93420080.94520090.88620100.97720111.01820121.00920130.971020140.911120150.80

CND CurrencymonthsCurrency Cubic RegressionY=-0.00100233100233x^3 + 0.01214452214452x^2 + -0.01555011655011x + 0.85757575757577From 2005 to present, our dollar fluctuated, when our crudeOil is high, our dollar value compared to the USD rise and When the price of the crude oil drops, the dollar also drops in currency. In the graph, you can see a trend that falls along with the price of the crude oil on the previous page.Ive also use the cubic regression for this graph becauseIt follows the pattern. I believe that once the price of the crude oil becomes steady, our dollar value will increase.Works Cited

http://www.oil-price.net/index.php?lang=en

http://www.macrotrends.net/

http://inflationdata.com/inflation/inflation_rate/historical_oil_prices_table.asp

http://www.nrcan.gc.ca/energy/crude-petroleum/4557?destination=node/1507

http://www.macrotrends.net/1369/crude-oil-price-history-chart

http://www.canadianforex.ca/forex-tools/historical-rate-tools/yearly-average-rates