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QUESTION: Dear Pallas21,
How important is for the US that the oil is sold in US dollars all around the world? Why?
Thank you,

ANSWER: The US Dollar is a hard currency and it is a convention mostly that it is used to express prices such as the one of the oil barrel.  It acts as a numeraire.  You may want to read on Walras and the need for a numeraire.  Good luck.

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QUESTION: May you please provide a brief summary on Walras’ need for a numeraire?
This is not homework.
Please do not refer me to Google or to a text book.

ANSWER: Will be happy to provide you with a link to the model:
It boils down to finding a numeraire which is used to express the value of goods and services, facilitating the trade. Thus a goat may be the equivalent of x units of this numeraire, which in modern days is money. Good luck. You have a long way to go.

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QUESTION: Why is the US Dollar used to express prices such as the one of the oil barrel and not any other currency? Why the US dollar was chosen to act as a numeraire and not any other currency?

It is a convention.  The US Dollar has been the currency of reference since WWII due to the strength of the economy and the fact it is a hard currency, previously convertible into gold, and subject to fewer fluctuations than other currencies.  Before that the Pound Sterling was widely used.  


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