| | | | Recently, there's been a lot of buzz on social media about the supposed expiration of an agreement between the United States and Saudi Arabia regarding the use of the US dollar for oil trade transactions, often referred to as the "petrodollar.”
But I feel the need to set the record straight — these claims are nothing more than "fake news" with no basis in reality.
Let me clarify: Those of us old enough may remember there was an OPEC embargo in 1973 that caused a gas shortage here in the US.
After that situation, an agreement was made in 1974 between the US and Saudi Arabia to prevent a repeat of such an event
But this agreement had nothing to do with the currency used for oil transactions, as has been cited on the “fake news” social media posts.
The reason this "petrodollar" rumor never hit the mainstream media like Fox Business or CNBC is that it was pure social media fake news.
The truth is, the Saudi government has used various currencies for oil dealings over the decades, rather than exclusively using the US dollar.
It seems the purpose of these social media rumors is an attempt to instill fear in the markets, but they lack any factual basis or credible sources.
I cannot stress enough the importance of exercising caution and verifying information, especially when it comes from unverified sources on social media platforms.
To finish up, the claims about the expiration of a "petrodollar" agreement between the US and Saudi Arabia are untrue and should be disregarded as mere "fake news."
There was no such agreement to begin with, and while the Saudis have primarily accepted payment for oil in U.S. Dollars, they have accepted many other currencies over the decades as well.
Stay vigilant, my friends, and don't let social media fiction distract you from reality.
— Geof Smith
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