07 April 2016

Oil is expensive because of US Dollar?

According to the Petrol Dealers Association of Malaysia, crude oil is purchased in US Dollars.

It's president Datuk Hashim Othman said, "Even though the price of crude has gone down, our ringgit has depreciated, so we're buying at a higher price. All global trade in crude oil is in US dollars. Currency is the main reason."

Ironically, Malaysia produces crude oil as well. If oil mined from Malaysia is sold to Malaysian petrol dealers, would it not be cheaper for Malaysians? Can Malaysian crude oil be sold in Malaysian Ringgit to Malaysians?