Exchange rate movements drive up oil prices, impacting global consumption trends.
Oil consumption in industrial countries decreased from 1980 to 1983, despite lower oil prices and a growing economy. This was due to consumers adjusting to the high oil prices in 1979. Exchange rate movements also played a role in reducing oil consumption. When the US dollar strengthened, it made oil more expensive for other countries. As a result, some major industrial countries paid more for oil in 1983 than they did in 1980.