Weak dollar leads oil? or viceversa?

Discussion in 'Economics' started by crgarcia, Mar 25, 2008.

  1. Many mainstream media states that a devaluation in the dollar precedes oil price surges.

    Isn't it backwards?
    Oil rich countries, receive only USD for their oil. If oil prices are higher, they receive more $, so they can sell more $s, driving the dollar lower.