Why do gas prices drop when the dollar strengthens?

Question

I read in a business article that when our currency "strengthens" the gas prices go down. My question is, why?

Answer 1

To put it another way from the good explanation given before me, oil is traded only in dollars (with the exception of a few oil producing nations). Meaning that if you want to buy some oil you better have some dollars.   Now the connection between the cost of oil and a strong dollar is that when the dollar is strong it takes less dollars to buy a barrel of oil.  If the dollar weakens then it takes more dollars to buy the same barrel of oil.

  

Answer 2

Since oil is traded globally, the price will fluctuate against any individual currency based on the relative strength of that currency.

That isn't a very clear answer, i'll try to add a bit. If Venezuela is producing oil, they can sell it to anyone. They will sell it to get the most possible value. Since different currencies will fluctuate in value against each other, as the dollar strengthens, that means oil goes down relative to the dollar, but up relative to the weaker currency.

Let's say $100 = 100euro yesterday. and oil was $100 per barrel. Thus oil was also 100euro per barrel. But the dollar strengthened so that $90=100 euro. Then oil will be $90 per barrel but still 100euro per barrel, all other things equal.