How many barrels of crude oil can one ounce of gold buy?
1 oz of gold buys 68.4 barrels of crude oil
Oil is expensive relative to gold. Often seen during oil supply shocks or geopolitical crises affecting oil production.
Normal historical range. Both commodities are fairly valued relative to their historical relationship.
Gold is strong relative to oil, or oil is cheap. Seen during oil gluts, recessions, or gold bull markets.
| Year | Ratio | Event |
|---|---|---|
| 1970 | 6.5:1 | Pre-oil crisis |
| 1974 | 15.0:1 | First oil crisis |
| 1980 | 22.0:1 | Gold peak, oil at $40 |
| 1986 | 27.0:1 | Oil price collapse |
| 1990 | 12.0:1 | Gulf War |
| 1998 | 30.0:1 | Oil at $10, Asian crisis |
| 2000 | 9.0:1 | Oil recovery |
| 2008 | 7.0:1 | Oil at $147 peak |
| 2009 | 24.0:1 | Post-financial crisis |
| 2011 | 16.0:1 | Gold at $1,900 |
| 2014 | 12.0:1 | Oil still high |
| 2016 | 47.0:1 | Oil crash to $26 |
| 2018 | 18.0:1 | Oil recovery |
| 2020 | 85.0:1 | COVID oil crash (briefly negative!) |
| 2022 | 17.0:1 | Ukraine war, oil spike |
| 2024 | 32.0:1 | Gold rally, oil moderate |
| 2026 | 68.4:1 | Current |
The Gold to Oil ratio compares two of the world's most important commodities. Gold represents monetary value and a store of wealth, while oil represents energy and economic activity.
The ratio tends to spike when oil crashes (like in 2020 when oil briefly went negative) or when gold rallies strongly. It tends to fall when oil prices surge (like in 2008 when oil hit $147/barrel).
In April 2020, WTI crude oil futures briefly traded at negative $37/barrel—traders were paying others to take oil off their hands due to storage constraints. This caused the Gold:Oil ratio to briefly become undefined (or infinite). Even using the spot price around $20, the ratio exceeded 85:1, an all-time extreme.
The Gold to Oil ratio is calculated by dividing the price of one ounce of gold by the price of one barrel of crude oil (usually WTI). It shows how many barrels of oil one ounce of gold can purchase.
The historical average is approximately 15-16:1, meaning one ounce of gold typically buys about 15-16 barrels of oil. However, the ratio has ranged from 6:1 (when oil was very expensive) to over 85:1 (during the 2020 oil crash).
Some investors use extreme readings as contrarian signals. A very high ratio (oil cheap) might suggest oil is undervalued; a very low ratio (oil expensive) might suggest gold is undervalued. However, timing commodities is difficult, and the ratio can stay extreme for extended periods.