Saudi Arabia is open to non-dollar payments

[Samman Kaseeb Sleiman]

It's declared so publicly now

 

[JackAlabama]

If we recap history, I see Saddam and Gaddhaffi stating similar plans in the past.

How will it develop this time? Did time change or will we see a similar pattern unfold?
(I have no answer to this, since I do not know enough about this region.)

 

[MiddleEuroAsia]

If we recap history, I see Saddam and Gaddhaffi stating similar plans in the past.

How will it develop this time? Did time change or will we see a similar pattern unfold?
(I have no answer to this, since I do not know enough about this region.)

The US is the largest oil producer in the world, and relationships are normalized between most of the GCC countries and Israel. this isn't the 70s, there is no US dependence on Gulf states' oil (except OPEC decisions that might drive the prices up or down) and there aren't (and won't be) oil embargo that we saw happened between the Arab nations and the US that we saw in the 70 ever again. period.

plus Saudi Arabia will lose a lot if they decide to dumb their US T bills on the free market, their overall t bills accounts for only 3.5% or something like that when comparing it to japan or china who holds the majority of these bills.
so these news are just Saudis taunting Americans so the Americans submit to saudis demands, same as usual, nothing new.

 

[Samman Kaseeb Sleiman]

I don't have much of the information to argue. What I know is this:

* US is the largest oil producer in the wold - yes. Whereas 2rd and 3rd ones are Russia and Sauid Arabia, and the difference between 1st, 2nd and 3rd players isn't too high.

* US nontheless has recently turned to Venezuela for oil . How come that the 'the largest oil producer' would do it? Venezuela has been or is sanctioned by the US, therefore the fact US has had to turn to Venezuela may mean the US desperately needs oil, or some oil-derivatives.

* Moreover, the gas prices are high in the US. "Putin is to blame for high gas prices in the US", the Biden claims. The largest oil producer is uncapable of keeping the gas prices low in its own country, that is.

* You can claim that it's "nothing new" if you look at it superficially. Stupid statement. One can say "it's nothing new" about any event in the world. "Oh, Ukraine war. So what? People have waged wars for thousands of years. Sanctions? New currency? But people have been doing it for decades and ages, in some form or other. Nothing new"

* Sauid Arabia can buy modern weapons from many countries other than US nowadays. In the past this wasn't the case. I don't know much about this, though.

------

 

[Martin Everson]

Saudi Arabia is in a strong bargaining position. It has joint agreement to produce missiles with China anyway and Russia has arms to sell also. Plus Huawei is building Saudi's telecom infrastructure and China is heavily involved in Saudi Arabia's Neom project etc.

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrimussa2&f=a
https://asia.nikkei.com
China is now Saudi Arabia biggest customers for crude oil. U.S is no longer the client state it once was for Saudi oil so the US/Saudi relationship is going to lack significance going forward.

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRIMUSSA2&f=M
It makes sense for Saudi Arabia to diversify out of dollar holdings as its logical that if you got out going bills to pay China for goods and and services and China wants RMB then your gonna have to generate RMB from oil sales at some point.

 

[JackAlabama]

The US is the largest oil producer in the world, and relationships are normalized between most of the GCC countries and Israel. this isn't the 70s, there is no US dependence on Gulf states' oil (except OPEC decisions that might drive the prices up or down) and there aren't (and won't be) oil embargo that we saw happened between the Arab nations and the US that we saw in the 70 ever again. period.

plus Saudi Arabia will lose a lot if they decide to dumb their US T bills on the free market, their overall t bills accounts for only 3.5% or something like that when comparing it to japan or china who holds the majority of these bills.
so these news are just Saudis taunting Americans so the Americans submit to saudis demands, same as usual, nothing new.

The situation is indeed quite new actually. There are many countries trying to jump off the dollar bandwagon at similar times, not just one small remote place.
To keep their pole position, theyd need to get rid of the green energy zealots in the us.

 

[tyrexoid]

The situation is indeed quite new actually. There are many countries trying to jump off the dollar bandwagon at similar times, not just one small remote place.
To keep their pole position, theyd need to get rid of the green energy zealots in the us.

What do you think about the fusion energy breakthroughs? (possibly unpacked old patents that were hidden in order to keep selling oil and kept this circulating commodity in the world, for some reason, but it doesn't matter as long as fusion works now, so oil should start getting cheaper when large scale reactors will get built). In 10 years it is possible that green energy will power most of the US, who knows? with enough investment. Burning atoms as fuel, in the reactors, much cleaner than gas and oil. I'm very excited to see this tech.