The rise in crude oil prices will bring a burden to the American economy and have a negative impact. This will cause the dollar exchange rate to fluctuate downwards. And if the price of crude oil is high, it will affect the cost of American industrial development. Therefore, the price of crude oil will directly affect the US economy and the US dollar exchange rate.

In the current market, crude oil belongs to the basic energy for economic development. Therefore, when crude oil rises, the prices of many products in the United States will rise, which is not conducive to the export of American products and may lead to the US trade deficit. When the United States has a trade deficit, it is likely to lead to the depreciation of the dollar. Moreover, if crude oil rises sharply, it will also affect the development of listed companies in the machinery and automobile industries in the United States, leading to the decline of stocks in such industries. Because the listed companies of such stocks have a large disk, it may lead to a decline in US stocks. Leading to the withdrawal of some international funds from the US market will cause changes in the supply and demand relationship between foreign currency and the US dollar, leading to the depreciation of the US dollar.

International crude oil transactions are denominated in dollars, while consumers in various countries buy crude oil products in their own currencies. Crude oil producing countries sell crude oil to get dollars, and at the same time buy goods and services from other countries in other currencies. For OPEC members, this situation is even more serious, and the impact of dollar depreciation varies from country to country. International crude oil companies sell their crude oil products in dollars and pay wages, benefits, taxes and other expenses in local currency. When the dollar depreciates, countries that appreciate relative to the dollar can buy cheap crude oil, while countries linked to the dollar cannot benefit from crude oil imports.

Theoretically, the impact of the depreciation of the dollar on crude oil producing countries is: reducing the purchasing power of these countries and pushing up the domestic inflation level, while the demand for crude oil will increase in countries with a relative appreciation of the dollar. Another microscopic observation is that the depreciation of the dollar will greatly increase the demand for gasoline in the United States, because many people who plan to travel to Europe will choose to stay at home. Due to the extremely heavy crude oil tax rate in European countries, roughly speaking, European countries can't benefit much from the decline in international crude oil prices.

Crude oil is mainly used in transportation, industry, family and commerce, and power generation. The consumption of crude oil for transportation in the United States accounts for 72%, while China is the fastest growing automobile market in the world. There will be no large-scale alternative fuels in the short term, and China's demand for crude oil will continue to rise. The rise and fall of international crude oil prices will have a great impact on both China and the United States. Generally speaking, the depreciation of the dollar will contribute to the rise of international crude oil prices in three aspects:

First, the depreciation of the dollar will reduce the purchasing power of crude oil producers or exporters. International crude oil prices are set in US dollars, and crude oil producing countries sell crude oil to obtain US dollars, which are then converted into other countries' currencies to buy goods from other countries in the world. Due to the depreciation of the dollar, the purchasing power of crude oil producing countries has declined. From this perspective, producing countries need to raise prices to make up for the loss of purchasing power.

Second, the depreciation of the dollar will increase the purchasing power of some crude oil buyers such as Europe and Japan. Because the international crude oil prices denominated in euros and yen have become relatively cheap; However, the depreciation of the US dollar has no effect on the purchasing power of crude oil in countries linked to the US dollar exchange rate. Therefore, from the perspective of the global market, the depreciation of the US dollar will boost the global demand for crude oil.

Third, the depreciation of the dollar itself corresponds to the improvement of the global economy. Especially in the past 10 years, with the rapid development of emerging markets, the demand for crude oil is in a strong state, and it is necessary for international crude oil prices to rise.