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Thursday, February 2, 2023
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Saudi Arabia Considers End to Petro-Dollars that Could Destabilize US

'China buys approximately 25% of all Saudi oil and that 80% of all oil globally is currently purchased using dollars... '

(John RansomHeadline USA) As the Biden administration continues to stumble from one self-imposed crisis he has created to the next Biden-imposed crisis has created, news comes from the Wall Street Journal that Saudi Arabia and China are close to a deal for China to pay for oil sales with yuan, not US dollars.

The talks between China and Saudi Arabia have been unfolding against the backdrop of Saudi dissatisfaction with Biden’s security commitment to the kingdom, said the Journal.

Then-candidate Biden promised in 2020 that he would treat Saudi Arabia as a “pariah” nation from the campaign trail, and since he’s become president, the relationship between the Biden administration and Saudi Arabia has remained at the best frosty.

Biden said while campaigning that there is “very little social redeeming value in the present government in Saudi Arabia,” according to the New York Times.

In return, Saudi Arabia and other Middle East governments refused to take phone calls from Biden last week about the oil crisis going on in the United States that has prices soaring, reported the UK’s Guardian.

By contrast, the Saudi crown prince Mohammed bin Salman has spoken glowingly of China in a recent meeting with Chinese communist party secretary Xi Jinping.

“In the hundreds, even thousands, of years, the interactions between the sides have been friendly. Over such a long period of exchanges with China, we have never experienced any problems with China,” MBS told Xi last week in a face-to-face, according to the Daily Sabah.

The yuan has risen in value as news of the talks of a potential oil deal leaked out, said Bloomberg, reversing an earlier decline as it looks like the six-year old talks could bear fruit at the worst of times.

Washington, Biden and the United States are being confronted with their greatest crisis of confidence in the country arguably since Pearl Harbor, as one crisis remains unresolved and other crises pop up.

While a deal between Saudi Arabia and China wouldn’t spell the end of King Dollar immediately, the ability to leverage the Chinese yuan into petrol contracts would help regimes in Iran, Russia and China avoid US sanctions.

China buys approximately 25% of all Saudi oil and that 80% of all oil globally is currently purchased using dollars, according to Fox Business.

A Middle East oil deal with China would therefore substantially weaken the US dollar, and give ammunition to critics who have long claimed that the yuan will eventually replace the dollar as the world’s reserve currency, even if the change would be largely symbolic now.

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