?Why is oil bought in dollars
Oil is bought in dollars because it is a commodity. All
commidities in the US are bought in dollars. This is because it's
then easier to trade them
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the exchange determines the currency. US exchanges choose
dollars, the Hang Sin trades in yen. The values of a currency used
on an exchange can affect a commmodities market as well as other
market forces. Commodite traders in the US tade worldwide on
different exchanges and different currencies.
in some cases a trader can make as much off currency
fluctuations as they do off the commodity depending on what happens
in the world and on which exchange they sell the commodity. Oil for
example can change hands several times as a tanker heads to a port
or it may go to a different port and a different buyer. Oil traders
will often park a tanker and store the oil awaiting better currency
conditions