March 12, 2015
The silly things you read in the NYT! It really doesn’t matter what units oil is priced in. We get a market price that is determined by supply and demand. This will be higher measured in euros any time the euro falls in value simply because at the same price measured in other currencies, oil will cost more euros.
It would only matter if the price were in dollars if there were long-term contracts that are specified in dollars. In some cases, companies will have long-term contracts, but not all of these are in dollars. Countries and companies can contract for oil in any terms they want. They can do it yen, pounds, even peanut butter.
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