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been one of the most important areas of economic literature study. With the spread
of oil stocks and oil futures markets, the oil market and subsequently the theory of
price expectations revolutionized the formation of crude oil prices. In the short run,
by shifting interest rates, monetary policy, cash flow between monetary, bond, and
equity markets (and the oil market) divert crude prices from their long-term path
(http://qjerp.ir 2019).
The United States also suffers from the volatility of the dollar rate, given the high
demand for crude oil. Of course, the depreciation of the dollar also implies benefits
to the United States. When the value of the dollar decreases, the country’s debt will
be diminished, or the US tries to weaken the dollar to counteract the power of
economic competitors such as China. But we should not forget that the weak dollar
has caused many countries, especially producers and countries dependent on oil
revenues, to face uncertainty and encourage them to use alternative currencies. This
could undermine the position of the United States as the supreme power of the international system. The 2007 global financial crisis was heavily influenced by the
decline in America’s top position in the global economy, and the impact of the dollar
on the decline in purchasing power and financial strength of individuals led to a
reduction in consumption and, consequently, price changes, resulting in the disappearance of the financial crisis. And to minimize the economic problems in the
United States, it can greatly improve the security of oil prices in terms of the impact
of dollar stability and financial recovery on individuals. Thus, given the role of the
United States in the global oil market and the influential trends in this area, oil
prices are largely dependent on US domestic economic and political conditions and
any kind of policymaking in this country can quickly rise in price influencing oil
(Pour Ahmadi and Sadoughi 2010:167).
Political Economy of Oil from the US Perspective
Policymaking in oil policy in US strategic thinking is based on a systemic analysis
approach. Analysis of systems is used to describe the development and use of mathematical models as aiding in decision-making. The first question that arises in analyzing systems and in the form of policymaking in the political economy of oil is to
what extent each issue is examined? Systems are dynamically and permanently
changing, and actors play different roles in each system (Mosalla Nezhad 2016:183).
The indices forming the political economy of energy indicate that the issue of oil
and energy are always considered as influential factors on the global, regional, and
national economy. Energy security is one of the main indicators of economic and
international politics. The process of planning the dominant players in the global
system has been shaped by virtue of which energy security could influence the political and economic behavior of countries, especially the great powers. What is said
in the context of Iran’s economic sanctions be part of the systemic attitude toward
the political economy of oil. The need for resource control requires such actors to
use energy tools to control international politics and security (Ebinger 2007:2).
Fluctuations in the Dollar Exchange Rate and Oil Price Changes
been one of the most important areas of economic literature study. With the spread
of oil stocks and oil futures markets, the oil market and subsequently the theory of
price expectations revolutionized the formation of crude oil prices. In the short run,
by shifting interest rates, monetary policy, cash flow between monetary, bond, and
equity markets (and the oil market) divert crude prices from their long-term path
(http://qjerp.ir 2019).
The United States also suffers from the volatility of the dollar rate, given the high
demand for crude oil. Of course, the depreciation of the dollar also implies benefits
to the United States. When the value of the dollar decreases, the country’s debt will
be diminished, or the US tries to weaken the dollar to counteract the power of
economic competitors such as China. But we should not forget that the weak dollar
has caused many countries, especially producers and countries dependent on oil
revenues, to face uncertainty and encourage them to use alternative currencies. This
could undermine the position of the United States as the supreme power of the international system. The 2007 global financial crisis was heavily influenced by the
decline in America’s top position in the global economy, and the impact of the dollar
on the decline in purchasing power and financial strength of individuals led to a
reduction in consumption and, consequently, price changes, resulting in the disappearance of the financial crisis. And to minimize the economic problems in the
United States, it can greatly improve the security of oil prices in terms of the impact
of dollar stability and financial recovery on individuals. Thus, given the role of the
United States in the global oil market and the influential trends in this area, oil
prices are largely dependent on US domestic economic and political conditions and
any kind of policymaking in this country can quickly rise in price influencing oil
(Pour Ahmadi and Sadoughi 2010:167).
Political Economy of Oil from the US Perspective
Policymaking in oil policy in US strategic thinking is based on a systemic analysis
approach. Analysis of systems is used to describe the development and use of mathematical models as aiding in decision-making. The first question that arises in analyzing systems and in the form of policymaking in the political economy of oil is to
what extent each issue is examined? Systems are dynamically and permanently
changing, and actors play different roles in each system (Mosalla Nezhad 2016:183).
The indices forming the political economy of energy indicate that the issue of oil
and energy are always considered as influential factors on the global, regional, and
national economy. Energy security is one of the main indicators of economic and
international politics. The process of planning the dominant players in the global
system has been shaped by virtue of which energy security could influence the political and economic behavior of countries, especially the great powers. What is said
in the context of Iran’s economic sanctions be part of the systemic attitude toward
the political economy of oil. The need for resource control requires such actors to
use energy tools to control international politics and security (Ebinger 2007:2).
Fluctuations in the Dollar Exchange Rate and Oil Price Changes