There never was much of a correlation, negative or otherwise. The huge gain in oil cannot be explained by the percentage fall in the dollar. In other words, oil has gained far more percentage-wise than the dollar has lost.
USD/oil negative correlation breaking down: A bullish development for the USD?
It has been interesting to see crude oil climbing to new record highs despite the resurgent greenback. The common belief is that there is a negative correlation between the U.S. dollar and oil, a result of oil being priced in dollars. "As the dollar declines in value, so does the price of oil in non-dollar terms," explains Michael Woolfolk at the Bank of New York Mellon. "Consequently, foreigners bid up the price of oil and other dollar-denominated commodities. The result is that the price of crude oil and other commodities rise in dollar terms as the dollar falls in value against other currencies." If, on the other hand, ... (full story)