At present, almost all international crude oil transactions are settled in US dollars. Although some countries such as Iran have tried to use euros for pricing, they have undoubtedly encountered difficult obstacles. Because, since the 1970s, the United States and Saudi Arabia, the world's largest oil producer at the time, have reached an "unshakable agreement". Both parties decided to use the U.S. dollar as the only pricing currency, and received support from other OPEC members. agree. Since then, the U.S. dollar and oil have been closely linked and have been inextricably linked.

Generally speaking, the US dollar and crude oil have been negatively correlated for a long time.

Since oil trading prices have been mainly priced in US dollars for a long time, the depreciation of the US dollar shows that the actual value of the US dollar is declining. Therefore, if you want to buy the same oil, you need to pay more US dollars. On the surface, This will directly lead to an increase in the price of oil. If it does not increase, it means that the actual price of oil in US dollars has dropped.