China

China Could Shatter Petrodollar By Compelling Saudi Arabia To Trade Oil In Yuan

China has become a key player in the oil market since overtaking the US to become the world's largest importer/Photo: © Jianan Yu / Reuters
China Could Shatter Petrodollar By Compelling Saudi Arabia To Trade Oil In Yuan
Beijing is likely to “compel” Saudi Arabia to sell crude oil in yuan, and others will follow, according to the chief economist and managing director at High Frequency Economics Carl Weinberg. This will hit the US dollar, he says.

In an interview with CNBC Weinberg said China has become a key player in the oil market since overtaking the US to become the world’s largest importer.

Saudi Arabia has “to pay attention to this because even as much as one or two years from now, Chinese demand will dwarf US demand,”Weinberg told the media.

“I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them,” he added.

A 1974 agreement between US President Richard Nixon and Saudi King Faisal meant Riyadh has been accepting dollars for all its oil exports.

However, recently, countries like China and Russia have been looking to exclude the greenback from bilateral oil trade. Russia and Saudi Arabia are the most significant exporters of oil to China, alternating in top spot.

China has already said it wants to start a crude oil futures contract priced in yuan and convertible into gold.

Veteran investor Jim Rogers told RT last month that countries are getting more concerned about trading in dollars, because “if the US gets angry at you, they just set enormous pressure on you that can even get you out of business.”

“China, Russia, and other countries understand this, and they are trying to move world trade and world finance away from that,” said Rogers.

In July, Russia and China signed a 68 billion yuan ($10 billion) investment fund to ease ruble-yuan settlements.

Source/RT

Click to add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

China

More in China

Giant Oil Field Discovered In China with Over Billion Tons of Reserves

December 1, 2017

Chinese Elite Forces to Arrive in Syria Soon to Join War on Terrorists

November 29, 2017

China Denies Role In Zimbabwe’s Power Transition

November 27, 2017

China Busts Underground Bank Funneling Billions Out Of Country

November 23, 2017

‘The Business of China Is Business. The Business of America Is War’ – Gerald Celente

November 6, 2017

China’s Launch of ‘Petro-Yuan’ In Two Months Sounds Death Knell for Dollar’s Dominance

October 25, 2017

China Will ‘Compel’ Saudi Arabia To Trade Oil In Yuan — And That’s Going To Affect The US Dollar

October 19, 2017

China Pushing To Be ‘Truly Connected’ With Latin America, Caribbean

October 16, 2017

Trade between Russia & China Booming – Chinese Ambassador to Russia

September 18, 2017
You Can Advertise Here
"The other side of the news!"
Copyright © 2015 Carib Flame. Follow us on Twitter @caribflame