Empirical Analysis Of The Impact Of Dollar Exchange Rate Change On The International Oil Price Fluctuations

Oil is one of the most important energy in twentieth century. In the foreseeable future oil will remain the most important source of energy, it will affect all aspects of social and economic development. As such an important energy resource, it is understood that the importance of oil starting affect the industrial production and human life. Research scholars from various countries have to fall all their energy into researching the formation and factors of oil prices. Oil is a complex product, from product attributes, financial attributes and political attributes. Therefore, it also determines the factors that affecting the price changes of oil. As a commodity, the relationship between supply and demand balance in oil prices can affect the formation of geopolitical events; the U.S. dollar exchange rate, oil-exporting countries policy, financial derivatives speculation and other factors can affect the price formation of oil.Dollar and oil are the most important currency and energy in the world. Since the United States and Saudi Arabia signed a U.S. dollar-denominated oil trade agreement, gradually formed a "dollar-oil" linked system, U.S. dollar exchange rate and international crude oil prices become more closely. In the 21st century, the U.S. economy continues to weaken. Substantial depreciation of the dollar, leading to a rapid rise in international crude oil prices, rising international crude oil prices and the dollar assets overflowed into the international market sought after oil futures. Dollar and oil create the loop relationship of influencing each other.Since the reform and opening up, China’s rapid economic development, the demand for oil is also rapidly increasing, thereby also increasing its crude oil on the international market. Against this background, we have the formation of the international oil market operation rules and have a deep understanding of the price mechanism, which is good and healthy development and to build an effective oil reserves of our country’s economy has major strategic significance.In this paper, we will research from fluctuate perspective of US dollars and use econometric methods and international oil price formation mechanism exists to explore, with a glimpse of the factors affecting the operation of the rules of the international oil market and the international oil price changes.