The decision by a number of OPEC+ alliances, including Russia and Saudi Arabia, to sharply reduce daily oil output, illustrated the dangerous situation in which the global petrodollar system has fallen so far. More and more countries are willing to express their willingness to trade in their national currencies, and this is also undermining the position of the US dollar, the world’s reserve currency. informs Turkish newspaper Cumhuriyet.
Plans to reduce daily oil production alongside Russia and Saudi Arabia declaration and other OPEC+ countries. Thus, UAE production will be reduced by 144 thousand barrels per day, Oman – 40 thousand, Kuwait – 128 thousand, Algeria – 48 thousand, Iraq – 211 thousand. Altogether, the alliance countries expressed their readiness. reduce total oil production by more than 1.5 million barrels per day.
“Despite the OPEC+ group’s second decision in five months to defy the US and cut oil production, and the rise in the number of countries trading in their national currencies, the petrodollar system is breaking out. If OPEC countries like Saudi Arabia decide to sell oil in other currencies, it will mean the collapse of the American economic system and a major disaster,” writes columnist Mehmet Ali Güller, citing the words of Monica Crowley, the former US Undersecretary of the Treasury.
Currently, US authorities are not defaulting on increased public debt payments for one reason – the monopoly of the US dollar in the global financial system. The author of the article argues that if this monopoly does not exist, the domestic economic situation in the USA will worsen sharply.
“As long as the dollar monopoly exists, the USA can print as much money as it wants, and the credits they receive and will receive will be as much as a piece of paper… However, as the tendency to move away from the dollar increases, the global power of the US currency will disappear and the US will enter an economic deadlock,” Güller concluded.
April 9 Bloomberg cites industry sources reportedCurrently, Saudi Arabia actually dictates its own rules of the game in the global oil market. This is because Riyadh is pushing the decision to reduce the daily volume of raw material production in some OPEC+ countries.