This is a U.S. news story, published by Investopedia.
For more U.S. news, you can click here:
more U.S. newsFor more energy & natural resources news, you can click here:
more energy & natural resources newsFor more news from Investopedia, you can click here:
more news from InvestopediaOtherweb, Inc is a public benefit corporation, dedicated to improving the quality of news people consume. We are non-partisan, junk-free, and ad-free. We use artificial intelligence (AI) to remove junk from your news feed, and allow you to select the best business news, entertainment news, world news, and much more. If you like energy & natural resources news, you might also like this article about
global currency. We are dedicated to bringing you the highest-quality news, junk-free and ad-free, about your favorite topics. Please come every day to read the latest global reserve currency news, global foreign exchange reserves news, energy & natural resources news, and other high-quality news about any topic that interests you. We are working hard to create the best news aggregator on the web, and to put you in control of your news feed - whether you choose to read the latest news through our website, our news app, or our daily newsletter - all free!
global oil tradeInvestopedia
•73% Informative
Petrodollars are dollars paid to oil-producing countries for their exports.
Oil exporters' reliance on the U.S. dollar reflected the dollar's already established role as the global reserve currency.
The USD stands at about 58% of the world's reserve currencies, down from more than 70% at the beginning of the century .
The rise of the petrodollar forced the U.S. to share political and economic power with the developing countries that supplied its energy.
Oil demand should decrease over time as the world moves toward cleaner, green, and renewable energy sources.
The politicization of dollarization, the American use of the powerful dollar to punish so-called "rogue" regimes, has led to a backlash.
As of 2023 , approximately 80% of the world's oil transactions are priced in U.S. dollars.
As a result, the dollar became the default currency for oil transactions.
A decline in the petrodollar system would have far-reaching consequences for the global financial order.
A shift away from dollar-denominated oil trades could reduce demand for USD.
VR Score
83
Informative language
88
Neutral language
44
Article tone
formal
Language
English
Language complexity
61
Offensive language
not offensive
Hate speech
not hateful
Attention-grabbing headline
not detected
Known propaganda techniques
not detected
Time-value
long-living
External references
no external sources
Source diversity
no sources
Affiliate links
no affiliate links