Petro dollar agreement with saudi

[cowadle]

The 50 year old agreement between the usa and saudi is dead. The saudi wouldn't negotiate a new agreement.

 

[Catt57]

Most sources I've found (that are actually discussing it and not fearmongering) are saying this amounts to nothing.

A few of the excerpts:

• The petrodollar isn't going anywhere. Saudi Arabia is trying to get concessions out of the US as part of the US's big push for a grand coalition to address the ongoing crisis in Gaza. The agreement will be renewed; this is just signaling.
• Until the KSA decides to peg oil to another currency, whether or not a formal petrodollar agreement exists is irrelevant. The USD's power doesn't disappear because you could theoretically buy oil in Yuan now.
• The markets have been open for several days since this happened and there's been no real reaction. $SPX is actually up. $DXY is up marginally, but it's close enough to make no difference. If this was a big crisis, we'd have seen a reaction by now.
• Saudi Arabia itself is looking to diversify away from oil (Vision 2030), so their relative importance can be expected to diminish over time. Additionally, the rise of EV and renewables will erode their importance on this subject even further.