Saudi Arabia is in talks with China to price its oil sales in yuan instead of dollars
The Wall Street Journal reported that Saudi Arabia is in active talks with China to price some of its oil sales to it in yuan, in a sign of rapprochement with Beijing, amid tension with Washington.
The American newspaper quoted informed sources that talks with China over oil contracts priced in the yuan stalled 6 years ago, but they accelerated this year as the Saudis became increasingly dissatisfied with American security commitments to defend the kingdom, as Saudi Arabia looks to obtain support from the United States regarding intervention in Yemen.
The sources said that this move would reduce the dollar’s dominance of the global oil market and represent another shift by the world’s largest crude exporter to Asia.
People familiar with the talks say the Saudis still plan to conduct most oil transactions in dollars, but the move could tempt other producers to price their Chinese exports in yuan as well, such as China’s other big oil sources Russia, Angola and Iraq.
The data showed that Saudi Arabia, which is the largest oil exporter in the world, maintained its position as the largest exporter of crude oil to China in 2021, as supplies increased by 3.1% compared to 2020.
“The dynamics have changed dramatically, the US relationship with Saudi Arabia has changed, and China has become the world’s largest importer of crude, and they are offering many lucrative incentives to Saudi Arabia,” a Saudi official familiar with the talks told the newspaper.
And the “Wall Street Journal” quoted informed sources and officials, on Monday, that Saudi Arabia had invited Chinese President Xi Jinping to visit Riyadh.
These developments indicate the kingdom’s tendency towards China, in a move that analysts interpreted as an attempt to pressure the United States, which has taken an approach that has dismayed Riyadh, since President Joe Biden took office.
Since US President Joe Biden took office in January 2021, the strategic partnership between Saudi Arabia and the United States has been tested. Because of Riyadh’s human rights record, especially in light of the war in Yemen and the killing of Saudi journalist Jamal Khashoggi in 2018.
Saudi Crown Prince Mohammed bin Salman said in an interview with The Atlantic this month that he “does not care”, in response to a question about whether US President Joe Biden misunderstands his concerns.
Several reports have stated in the past days, that there is tension between the US President and the Saudi Crown Prince, because Biden sees King Salman as his counterpart, and therefore does not care about contacting Prince Mohammed, because he is lower than him and not his counterpart. But Washington changed its policy in an attempt to mobilize international support for the confrontation against Russia and contain the rise in oil prices, as the White House tried to arrange phone conversations between US President Joe Biden, with Saudi Crown Prince Mohammed bin Salman and Abu Dhabi Crown Prince, Sheikh Mohammed bin Zayed, but they ignored The response, according to the “Wall Street Journal.”
In response to a question about why the Biden administration changed its previous policy, where the US President was calling King Salman and not Prince Mohammed, White House spokeswoman Jen Psaki said: “President Biden spoke with the Saudi king only a few weeks ago, and there were no contacts that were rejected. , according to CNN.
She added, “The Saudi monarch is President Biden’s counterpart, but again, there are different leaders attending different world events from a range of countries including Saudi Arabia, so if the crown prince attended any of the world events that the president attended recently, I’m sure He was going to deal with it, but he didn’t.”
And “CNN” quoted an official US source, saying that “it is difficult to reach a better situation without dealing with Mohammed bin Salman,” adding: “There is no other way to do this.”
Other US officials acknowledge that the relationship is not close to being as strong as it once was, and that it will require more and high-level attention from the Biden administration.
In response to a question about why the Biden administration changed its previous policy, where the US President was calling King Salman and not Prince Mohammed, White House spokeswoman Jen Psaki said: “President Biden spoke with the Saudi king only a few weeks ago, and there were no contacts that were rejected. , according to CNN.
She added, “The Saudi monarch is President Biden’s counterpart, but again, there are different leaders attending different world events from a range of countries including Saudi Arabia, so if the crown prince attended any of the world events that the president attended recently, I’m sure He was going to deal with it, but he didn’t.”
And “CNN” quoted an official US source, saying that “it is difficult to reach a better situation without dealing with Mohammed bin Salman,” adding: “There is no other way to do this.”
Other US officials acknowledge that the relationship is not close to being as strong as it once was, and that it will require more and high-level attention from the Biden administration.
Comments are closed.