> Nobody is going to start frenetically doing oil business in Yuan just because this agreement has expired. But the Europeans would prefer the Euro and the Jap

> Nobody is going to start frenetically doing oil business in Yuan just because this agreement has expired. But the Europeans would prefer the Euro and the Japanese the Yen,[1] because it is beneficial for their own economies. In the past period of energy price inflaction one could observe quite for awhile that the exchange rates favoured the US-dollar over the euro although inflation in the USA was higher than in the EU. The best explanation I came across for this phenomenon was the petrodollar: Importers from the EU needed to exchange a lot of euro into dollars to pay for oil. As a result, the exchange rate shifted increasingly against the euro, which made energy costs within the EU even more expensive, which gave the USA a competitive advantage. Importing countries therefore have a great incentive to conduct oil transactions in their own currency. This will not lead to the dollar losing its supremacy in oil trading overnight. But I expect its share of trading volume to gradually decline. [1] Some import figures of oil from Saudi Arabia from 2022 for context: EU 25.8B US$ and Japan 39.8B US$, which together was almost the same as China 65.0B US$. (However, the figures fluctuate considerably from year to year.) Source: https://tradingeconomics.com/european-union/imports/saudi-arabia/crude-oil https://tradingeconomics.com/european-union/imports/saudi-ar... https://tradingeconomics.com/japan/imports/saudi-arabia/crude-oil-petroleum-bituminous-minerals https://tradingeconomics.com/japan/imports/saudi-arabia/crud... https://tradingeconomics.com/china/imports/saudi-arabia/crude-oil-petroleum-bituminous-minerals https://tradingeconomics.com/china/imports/saudi-arabia/crud...