Saudi Arabia Is is considering the Chinese yuan to price some of its oil deals rather than the predominantly used US dollar, according to a report.

About 80% of global oil sales are made in US dollars, but this level of dominance may not last with talks of a currency shake-up between the Gulf countries and their counterparts in China, which buys more than 25% of oil from Saudi Arabia, as reported by the the wall street journal. This would mark a significant change for the Saudis, who have traded oil exclusively in US dollars for decades.

SAUDI ARABIA KILLS 81 SUSPECTED OF TERRORISM LINKS

Discussions over yuan-priced oil contracts between the two countries have been intermittent for the past six years, but have become more frequent as Saudi Arabia’s relationship with the United States becomes increasingly strained, sources told the publication.

The Biden administration released a report in February 2021 accusing Saudi Crown Prince Mohammed bin Salman of ‘approving’ the 2018 operation that resulted in the death of Jamal Khashoggi, a columnist for the Washington Post. Previously, President Joe Biden withdrew US support “for offensive operations” taking place in Yemen, signaling a break with Saudi Arabia and a clear shift from the Trump administration’s Middle East policy.

Additionally, the United Arab Emirates and Saudi Arabia have expressed concern over the United States’ participation in talks aimed at reviving the Iran nuclear deal.

“The dynamics have changed dramatically,” a Saudi official told Reuters. the wall street journal. “The relationship with the United States has changed. China is the world’s largest rough importer and offers many lucrative incentives to the kingdom.”

The report also quotes a senior US official who described the idea of ​​the Saudis selling oil to China in yuan as “highly volatile and aggressive” and “unlikely”.

Saudi Arabia threatened to use currencies other than the US dollar to sell oil on a bill in 2019 that would have left OPEC members hit with antitrust lawsuits, according to Reuters. The bill has been proposed several different times but never passed.

CLICK HERE TO LEARN MORE ABOUT THE WASHINGTON EXAMINER

Biden announced on March 8 that the United States would ban imports of oil and natural gas from Russia to put additional economic pressure on Russian President Vladimir Putin to end his war in Ukraine.

As Biden looked for options to increase production, the leaders of Saudi Arabia and the United Arab Emirates declined requests from the White House to speak with the president, the the wall street journal Previously reported. The White House has denied there were any “repelled” calls.