The United States is the world’s largest consumer of crude oil, so the situation has a direct impact on the global oil market.
It is not simply a positive or negative correlation with international oil prices.
In general, when the U.S. economy is strong, oil prices rise.
But a rise doesn’t mean the dollar index is necessarily strong.
Because the dollar index is a measure of how much the dollar has changed against a basket of currencies, the dollar index tends to decline if the dollar is weaker against other currencies.
In this case, the dollar index and international oil prices move in opposite directions.
Conversely, if the dollar strengthens against other currencies, then the dollar index tends to rise, while the dollar index and international oil prices move in the same direction.
In addition, the US dollar is often the “haven” of funds, so when a large number of funds choose the US dollar as a “haven”, and these funds are likely to be out of the international crude oil futures market, which will also make the US dollar index strong and the international oil price weak.
