Quote Originally Posted by Rus-La View Post
A U.S. Dollar is still a U.S. dollar... how does the value change with currency it is not tied to and if oil is tied to the dollar and not the money of the country producing the oil???
Exchange rates do effect this, that is why many guys who trade power and gas in other countries where they have to deal in foreign currency but their entity deals in US dollars, say Canada, hedge out risk by buying or selling Canadian dollar futures.

So, if oil has gone up from 60 to 90 dollars over a 3 year period, yet the Euro has gone from 1 dollar for 1 EURO to 1 EURO to 1.5 US dollars, Oil was worth 60 Euros three years ago and is still worth 60 Euros today (90/1.5). Those arent actual numbers, but I am giving a simple example to explain. So, countries using EUROS basically havent had the same inflationary pressure from oil that the US has had because their currencies have stayed stronger relative to the dollar, therefore stronger against oil.