What about the impact of the US dollar rate hike on crude oil?
The impact of the dollar's decline on oil producing countries is to reduce the purchasing power of these countries and push up domestic inflation, relative to the dollar appreciation of the country's demand for crude oil will rise. Another micro 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. As European countries heavy crude oil tax rate, roughly from European countries cannot benefit much decline in crude oil prices
Crude oil is mainly used for transportation, industrial and commercial, home, and power, the United States for transportation of crude oil consumption accounted for 72%, while China is the world's fastest growing car market, a large-scale alternative fuel impossible in the short term, the future demand for crude oil China will continue to rise, oil prices the price of us significantly.
Generally speaking, the depreciation of the dollar will lead to the rise in crude oil prices from three aspects:First, the decline in the value of the dollar will make crude oil producing countries or exporting countries purchasing power decline. The crude oil is priced in dollars, selling crude oil producing countries to obtain dollars dollars into other countries, with the money to buy the world other countries of goods, due to the depreciation of the dollar, China's crude oil production decline in purchasing power, from this point of view, to make up for the production in the purchasing power of damaged price demand;The two is the depreciation of the dollar would make some oil buying countries such as Europe and Japan because of the rising purchasing power of the euro, the yen denominated crude oil prices become relatively cheap; and the devaluation of the dollar on the crude oil and the dollar exchange rate is bound to the United States and other countries purchasing power has no influence to the global market from the point of view, the depreciation of the dollar, will to boost the global crude oil demand;The three is the depreciation of the dollar itself is a good global economy, especially in the past 10 years, the rapid development of emerging markets, the demand for crude oil in a strong state, the necessity of rising crude oil prices.
