The term "Petrodollar" has nothing to do with USD. The term simply means the revenue a country makes by selling oil.
People confuse it with how oil is priced (not sold).
Crude oil is priced in USD, regardless of the currency it is traded in. This gives the USD value. Basically, the USD is partially backed by a commodity which is unique among all currencies and effectively makes the USD the world's reserve currency.
So whenever someone gets excited about some country selling oil for Rupees or Rubles, it doesn't mean shit because the buyer still has to pay the equivalent of the price in USD.
Also, in the past, high oil prices would be bad for the US because they'd have to pay more for importing oil and that would increase the trade deficit.
These days, the US imports very little oil due to massive domestic production, so changes in the oil price have little impact on the economy.
The meme that the US would go to war over access to global oil has run its course because the US isn't dependent on oil exports anymore.
No, until a couple of months ago Saudi Oil was only sold for dollars, it wasn't just priced in dollars, that was what propped up the Dollar as the worlds reserve currency. That has just changed and the Petrodollar is dead.
After rereading my comment to gain perspective, I should have clarified our previous engagement in the middle east. I still stand by my point and will add that the Bush family stood to make a great deal of money off the increased oil prices from the wars in the Gulf.
Let me explain "Petrodollar" to you.
The term "Petrodollar" has nothing to do with USD. The term simply means the revenue a country makes by selling oil.
People confuse it with how oil is priced (not sold).
Crude oil is priced in USD, regardless of the currency it is traded in. This gives the USD value. Basically, the USD is partially backed by a commodity which is unique among all currencies and effectively makes the USD the world's reserve currency.
So whenever someone gets excited about some country selling oil for Rupees or Rubles, it doesn't mean shit because the buyer still has to pay the equivalent of the price in USD.
Also, in the past, high oil prices would be bad for the US because they'd have to pay more for importing oil and that would increase the trade deficit.
These days, the US imports very little oil due to massive domestic production, so changes in the oil price have little impact on the economy.
The meme that the US would go to war over access to global oil has run its course because the US isn't dependent on oil exports anymore.
No, until a couple of months ago Saudi Oil was only sold for dollars, it wasn't just priced in dollars, that was what propped up the Dollar as the worlds reserve currency. That has just changed and the Petrodollar is dead.
Why do you single out Saudi Oil when I did not?
Are you claiming that Saudi Oil isn't priced in USD?
The Bretton Woods agreement was that the Saudi's would sell their oil only for dollars.
The key word being 'sell' not 'priced', this required buyers to actually obtain dollars to buy the oil and established the PetroDollar.
Now that the Saudi's no longer require dollars for their oil, the petrodollar is history.
So, are you claiming that Saudi Oil isn't priced in USD?
Yes or no?
Wow.
Yes, haven't you been paying attention?
Yes. Which is why I included a link to a gas light in my reply. As in; you are gas lighting.
All true, but the wars over oil are now to protect Europe and their economy
Which war for oil is currently going on?
After rereading my comment to gain perspective, I should have clarified our previous engagement in the middle east. I still stand by my point and will add that the Bush family stood to make a great deal of money off the increased oil prices from the wars in the Gulf.
Yeah, well. That's why I wrote that this meme is outdated.
I don't believe one currently exists