the US dollar isnt backed by oil reserves, its a weak relation. Countries that want to trade oil with eachother must use dollars to purchase it, this is enforced by saudi arabia and the opec countries that have agreed to the practice with the usa. So every country in the world that uses oil tends to hold a reserve of US dollars, thus creating demand and inflating the price of the dollar. As the amount of dollars held in reserve by foreign countries increases or decreases month by month you will get small changes in the value of dollars but the MAJORITY of the inflation is caused by the fiscal policy of the US government. By adding dollars to the money supply or increasing the discount rate from the fed (increasing rates means banks will borrow less money from the fed eg leading to few dollars being in circulation)..

tldr. Foreign reserved for the use of purchasing oil (or simply being a reserve for its own sake) only makes up one of the factors controlling the supply of dollars in the economy. the other three are, government spending, Quantitative easing or tightening, and control over the discount rate.

the price of oil and therefore gasoline is independent from the price of the dollar, the dollar is only bouyed by the volume of oil traded not the price

the (((marketplace)))

Oil is a commodity and subject to supply/demand. Our currency is also a commodity. It is subject to supply/demand. The dollar is backed by oil, but not pegged to it. That is, the fed is not ensuring $1 will always buy a fixed amount of oil.

US dollar is not tied to oil

but the US dollar issuers would like you to think that

war of the mind

You know why. jews We also don't have a capitalist economy.

supply and demand is not static

The us dollar is only correlated with oil.

Since oil is sold in us dollars, that gives the federal reserve the ability to print money without devaluing the currency as much as it should. After all, you need to buy us dollars if you wanna buy oil. It's amazing what happens to dictators we have tolerated and supported and financed for years, if they want to sell oil in another currency

Because the world of finance is retarded. A year or two ago, the value of oil futures contracts went negative for a short while once the people holding said contracts realized they had nowhere to store all this oil they were soon going to have delivered.

Obviously things got straightened out, but for a couple days in this country, oil was technically less than worthless.

The natural variance in the value of a dollar is punted to oil. It's inflation and volatility laundering.

That and the eurodollar, being a filthy currency manipulation speculator, parasitizes on usd and injects volatility into the global market.

The queen is dead, lets see if memes can kill the eurodollar too.