The period between 2002 and mid-2008 - when oil almost reached $150 a barrel – potentially marked the peak of the petrodollar's powers. Thanks to the shale oil revolution, the U.S. is now the world's largest oil producer and has been a net exporter since 2021. Moreover, the rise of China's economic power and new geopolitical rifts have reduced the percentage of the global oil trade denominated in dollars. And last year, the dollar and oil both fell, rather than moving in opposite directions. The greenback's share of foreign currency reserves is currently the lowest in 25 years, and while it remains the preeminent currency of global trade, that position is starting to fray also.

Source: The Edge Markets January 06, 2026 16:25 UTC