In June, Google searches for the term "petrodollar" spiked to record highs.
The rise was fueled by a viral —but false — story about the end of the petrodollar agreement between the United States and Saudi Arabia.
There is no evidence that the petrdollar was formalized or had a specific an expiration date — as claimed in the article.
Why it matters
The petrodollar's influence on global financial markets been waning for decades. According to Javier Blas:
It stopped having a significant influence on global financial markets about three decades ago … Even during the price spike between 2003 and 2008, the value of dollars recycled into American debt instruments was very limited.
While the petrodollar system is indeed in gradual decline, the recent surge in Google searches reflects a widespread desire to believe in narratives that confirm pre-existing biases, rather than being grounded in evidence.
Via Javier Blas, Bloomberg [🔒]