Petrodollar System:
The US capture of Venezuelan President Nicolás Maduro has renewed attention on the declining influence of the petrodollar amid changing global oil trade dynamics.Venezuela holds the world’s largest proven oil reserves (~300 billion barrels, ~17% of global stock) but produces only about 1 million barrels per day, leaving vast untapped potential.The Trump administration aims to revive Venezuela’s oil industry by involving US energy majors, potentially re-anchoring future oil production within the US economic orbit.The petrodollar system refers to the global arrangement under which international crude oil trade is predominantly priced and settled in US dollars, creating sustained global demand for the dollar and reinforcing US economic, financial, and geopolitical dominance.It emerged in the mid-1970s following the collapse of the Bretton Woods system.
