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Saudi Arabia considers abandoning Dollar in oil trading


 The relationship between the United States and Saudi Arabia is always inseparable from the topic of oil.

As the cornerstone supporting the international status of the US dollar, the "Petroleum Dollar" was born from the agreement reached between the United States and Saudi Arabia in 1973.

On April 4th, the US House Judiciary Committee passed the "NOPEC" bill and directly said NO to OPEC. In short, the bill allows US companies to initiate antitrust litigation against OPEC organizations and prohibit all foreign organizations from conspiring to manipulate fossil fuel prices.

The OPEC organization currently supplies about one-third of the world's oil production, and the Saudi family controls 10% of global oil production. Therefore, the most affected Saudi Arabia will have to fight back.

In the past week, affected by this bill, the international market is worried about fluctuations in oil supply and oil prices continue to rise.

US Energy Secretary Rick Perry has said that the NOPEC bill may lead to unintended consequences. CNBC analysis of the US financial media believes that even if the two sides are unlikely to make a big hit, if Saudi Arabia abandons the oil dollar, it will seriously undermine the status of the US dollar as the world's major reserve currency, reduce the influence of the United States in global trade, and weaken its opposition.