Dollar, oil spread at 5-year high

Singapore - The gap between crude oil prices and the dollar has grown to its widest since the global crisis five years ago as slowing economies in Asia and Europe use less energy while the United States steams ahead with the aid of a domestic shale oil boom.

Brent crude prices, which reflect the strength of the global economy via its demand for energy, have fallen 40% since June as consumption growth in two of the world's three major blocs loses momentum.

Over the same period, the dollar has risen 12% against a basket of currencies as the US economy strengthens and expectations of higher interest rates rise.

The US economy is helped partly by rising domestic shale oil production, which has cut power and gas bills and lowered costs for energy-intensive industries.

"The fall of $0.80 per gallon of gasoline since June 2014 is boosting US consumer purchasing power by $100bn," Societe Generale said in a research note for December.