Global oil trade reports from the International Energy Agency (IEA)

Saudi Arabia Ends 50-Year Petrodollar Agreement with U.S., Moves Toward BRICS

Jun 21, 2024, 11:51 AM

Saudi Arabia has officially ended its 50-year petrodollar agreement with the United States. This significant move marks the end of the longstanding practice where oil sales were conducted in U.S. dollars, a system that has been a cornerstone of global financial stability. The termination of the petrodollar pact could have far-reaching implications for the U.S. economy and the global financial landscape. Analysts suggest that this shift might accelerate the world's transition towards alternative currencies. Additionally, Saudi Arabia's move aligns with its increasing economic affiliation with BRICS nations and China's Central Bank Digital Currency (CBDC). The end of the petrodollar deal has sparked discussions on its potential impact on dollar dominance and the broader geopolitical ramifications. The Atlantic Council has acknowledged the reality of this shift, which had been dismissed as a 'fake news' story. Tony Arterburn has also commented on the significance of this development, noting its potential to reshape global financial dynamics. This change comes 23 years after the initial silence on the matter.