How and what are the factors affecting $ and affect global crude oil price?

Is there a link between the interest rates and dollar value.How and what are the factors affecting $ and affect global crude oil price?
The basic answer to your question is this: The Fed.


The more money they put into the system the less that money buys aka higher prices. Interest rates affect the amount of money in the system. Everything is like a big ';Ebay';. If you and 10 other people really wanted 8 items and as you are bidding someone keeps giving everyone money to bid with... what happens to the price of those 8 things? Inflation!


Let's say someone owes you money(that they can print out) ,and that money is the only money that can be used on ';ebay';(aka the markets), they want to pay you the minimum payments as they borrow ALLOT more what happens to the ';ebay'; price of things? Inflation!


I hope this helps.How and what are the factors affecting $ and affect global crude oil price?
US Dollar is the benchmark of global value. Wealth as most know it is the tangible Industrial Technical growth initiated in the US.





Material accumulation of assets which identify a quality of life is likewise a US phenomenon. Home ownership and person automobile transportation are general elements of individual wealth. These two items are negotiable values which can be exchanged on credit.





Credit activity can be effected by levels of discretionary income. When crude oil prices rise over a significant period causing the increases in gasoline, less discretionary income is available for purchases or satisfaction of debt. Lower demand for credit depresses interest rates.