Dollars are used as the unit of currency for oil pricing on international commodity markets.
Oil exporters choose the U.S. dollar since it is the currency that is most frequently used for international transactions. Oil revenue is the most practical store of value since it requires a particular rate of return to be valuable.
The dollar's value significantly affects commodity prices because it serves as the standard unit of pricing for the bulk of commodities. Dollars are used as the global reserve currency.
The basis of the explanation for this link rests on two generally acknowledged premises. A barrel of oil costs US dollars everywhere in the world. When the value of the US dollar is high, it is cheaper to buy a barrel of oil. When the U.S. dollar is weak, oil costs more in dollars.
Learn more about international transactions: https://brainly.com/question/28275702
#SPJ4
