Fine wine and crude oil may not taste the same, they have more in common than you might think.
According to the calculations of two economists at the International Monetary Fund, every change in oilpirce during the last 12 years has been followed by a similar raise or fall in the Live-ex Fine Wine index. (This index represents the price movement of 100 of the most sought-after fine wines for which there is a strong secondary market).
Categories: wine news
How come ? Wine experts used to explain that the effects of weather and age were responsable for price movements.
Research by Serhan Cevik and Tahsin Saadi Sedik showed that instead growth in emerging economies has been the cause of the remarkable price evolution during the last decade of both oil and wine.
While oil consumption in rich countries has declined, the emerging countries are fully responsable for the increase in global oil demand since 2000. (China has become the largest car market in the world.)
Likewise, rising income in emerging economies have spurred wine drinking, whereas consumption in Europe has fallen. China (including Hong Kong) overtook Britain last year as the biggest export market for Bordeaux wines (according to CIVB).