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It is a keystroke to change from euro to dollars to buy oil and another keystroke for the seller to exchange those dollars for another currency. The fact that
by ckinnan 17y ago
It is a keystroke to change from euro to dollars to buy oil and another keystroke for the seller to exchange those dollars for another currency. The fact that oil is priced in one currency has almost no impact on the underlying supply and demand.
The important element to the oil-dollar story is the idea of the Gulf States opting to leave the American sphere and the sense of American decline.
- jeromec 17y agoIt's a play on words, but I believe "priced in dollars" means oil payments made in dollars. In other words, the currency you need to have on hand to trade with. See the article linked below: Excerpt: "Brazil has shown interest in collaborating in non-dollar oil payments, along with India." http://www.businessweek.com/globalbiz/content/oct2009/gb2009106_736291.htm http://www.businessweek.com/globalbiz/content/oct2009/gb2009... Also, Saddam Hussein was threatening to take payments for oil in euros...
- nazgulnarsil 17y agoright, but with millions of transactions a day this serves to boost aggregate demand for dollars, since currency is constantly being traded into it for a commodity which is then consumed.