Pricing oil in dollars

Hugo Chavez and Mahmoud Ahmedinejad, neither of whom has ever demonstrated much economic sophistication, contended at the recent OPEC Summit that the weak dollar is at the root of high oil prices.
[snip]
While it is true that when the dollar declines relative to the euro and other currencies oil prices in dollars rise faster than in those other currencies, prices are determined by supply and demand. A move to price oil in terms of a market basket of other currencies or in euros would not in itself affect the price of oil.
[snip]
The recent decline in the value of the dollar seems to have unnerved some Americans and emboldened less economically sophisticated enemies, but it is a boon for American exporters, and underlies our continuing economic strength.
http://www.americanthinker.com/blog/2007/11/pricing_oil_in_dollars.html