The Impact Of Dollar Devaluation On The World Oil Industry: Do Exchange Rates Matter?
Article from: OGEL 4 (2004), in Economic and Commercial Context for Oil, Gas and Energy Law
Introduction
Dollar devaluation creates several problems for the world oil industry. The US dollar is the currency of choice in global crude oil trade while consumers use local currencies to buy petroleum products. Oil producing countries receive their oil revenues in US dollars but use other currencies to buy goods and services from different nations. The situation becomes more serious for OPEC as a cohesive group: its members have different trade partners, a situation that makes the impact of dollar devaluation differ from one country to another. International oil companies sell their crude in US ...