The Demise of the Petrodollar

Contact Your Elected Officials
Wall Street Journal Header

Saudi Arabia Considers Accepting Yuan Instead of Dollars for Chinese Oil Sales

Talks between Riyadh and Beijing have accelerated as the Saudi unhappiness grows with Washington

Saudi Arabia is in active talks with Beijing to price its some of its oil sales to China in yuan, people familiar with the matter said, a move that would dent the U.S. dollarโ€™s dominance of the global petroleum market and mark another shift by the worldโ€™s top crude exporter toward Asia.

The talks with China over yuan-priced oil contracts have been off and on for six years but have accelerated this year as the Saudis have grown increasingly unhappy with decades-old U.S. security commitments to defend the kingdom, the people said.

The Saudis are angry at the lack of US support for their intervention in Yemenโ€™s civil war and the Biden administrationโ€™s attempt to strike a deal with Iran over its nuclear program. Saudi officials said they were shocked by the United Statesโ€™ hasty withdrawal from Afghanistan last year.

China buys more than 25% of the oil exported by Saudi Arabia. If denominated in yuan, these sales would strengthen the position of the Chinese currency. The Saudis are also considering including yuan-denominated futures, known as petroyuan, in Saudi Arabian Oil Coโ€™s pricing model known as Aramco.

It would be a sea change for Saudi Arabia to price even some of its roughly 6.2 million barrels of crude exports a day in anything other than dollars. The majority of global oil sales โ€“ around 80% โ€“ are in dollars, and the Saudis have been trading oil exclusively in dollars since 1974, under a deal with the Nixon administration that included security guarantees for the kingdom.

China introduced yuan-priced oil contracts in 2018 as part of its effort to make its currency tradable around the world, but they have not shaken the dollarโ€™s dominance in the oil market. For China, the use of dollars has become a danger highlighted by US sanctions against Iran for its nuclear program and against Russia in response to the invasion of Ukraine.

By Summer Said in Dubai and Stephen Kalin in Riyadh, Saudi Arabia

Read Full Article on WSJ.com

The Thinking Conservative
The Thinking Conservativehttps://www.thethinkingconservative.com/
The goal of THE THINKING CONSERVATIVE is to help us educate ourselves on conservative topics of importance to our freedom and our pursuit of happiness. We do this by sharing conservative opinions on all kinds of subjects, from all types of people, and all kinds of media, in a way that will challenge our perceptions and help us to make educated choices.

Was Texas Storm Manmade?

Another โ€œ1-in-100 yearsโ€ weather event in Kerr County happened next to a Texas designated โ€œWeather Modification Map of Rain-Enhancement Projects in Texasโ€.

The America Party Will Harm Democrats The Most

Elon Musk formed the America Party after an X poll asking his followers if they wanted โ€œindependence from the two-party system!

Democrats Exhibit the Dunning-Kruger Effect (DKE)

โ€œThe Dunning-Kruger effect is a cognitive bias where people with low ability at a task overestimate their competence, while those with high ability underestimate their competence.

250 Countdown

Those 56 intrepid men who signed put their very lives, honor and fortunes on the line. There was no auto-quill to accommodate their signatures.ย 

How the Senate Parliamentarian Changed the OBBB

An unelected bureaucrat does a important job in the U.S. Senate. Elizabeth MacDonough enforces senate rules on Trumpโ€™s โ€œOne Big Beautiful Billโ€.

Trial Begins Over Trump Adminโ€™s Deportations of Pro-Palestinian Students

A trial over President Trumpโ€™s attempts to deport pro-Palestinian activists began on July 7 with attorneys debating free speech.

Man Killed After Opening Fire at Border Patrol Facility in Texas

27-year-old man armed with a rifle was killed after opening fire outside Border Patrol facility in McAllen, TX, prompting shootout with feds and local police.

California Rejects Federal Push to End Transgender Participation in School Sports

CA education officials are refusing to end policies allowing transgender students to participate in school sports consistent with their gender identities.

Amazon Prime Day Set to Lift US Online Sales by $23.8 Billion

Online spending in the United States is expected to surge by $23.8 billion during Amazonโ€™s expanded Prime Day event from July 8 to July 11.

Trump to Extend Tariff Deadline to Aug. 1, Keep Rates at 10 Percent During Talks

White House press secretary Karoline Leavitt told reporters that Trump will sign the order to move the deadline to Aug. 1 from its current date of July 9.

DOJ, FBI Find Epstein Committed Suicide, Had No โ€˜Client Listโ€™

Jeffrey Epstein committed suicide and had no โ€œclient list,โ€ according to the Department of Justice (DOJ) and the FBI.

National Weather Service Fully Staffed During Deadly Texas Flooding: White House

White House press sec. Karoline Leavitt told reporters that the National Weather Service had a full staff on hand to handle the Central Texas flooding.

US Removes Terrorist Designation for Al Qaeda Affiliate in Syria

The State Department has removed from its list of foreign terrorist organizations Al Qaedaโ€™s affiliate in Syria, Jabhat al-Nusra.
spot_img

Related Articles