Oil Pricing in Dollars: 10 Simple Facts
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Submitted by Businomics Blog
The price of oil is quoted in dollars. Does this practice have any real impact on anything? Here are Mish’s 10 Simple Facts:
1) Oil is priced in dollars.
2) Oil trades in Dollars and Euros right now in spite of the pricing unit being dollars. OPEC has recently admitted this fact.
3) Clearly oil does not have to be priced in Euros to trade in Euros, or for that matter priced in Yen to trade in Yen. The same applies to any major currency.
