par energy_isere » Hier, 19:30
De quoi dégonfler la rumeur lancée par Supert :
Did Saudi Arabia really end petrodollar deal? UBS economist clarifies
Reports of Saudi Arabia ending the petrodollar deal sparked online discussions about the potential decline of the dollar as the world's reserve currency.
Jun 17, 2024 Written By: Sonu Vivek
Reports of Saudi Arabia ending the longstanding petrodollar deal with the US emerged last week, sparking online discussions about the potential decline of the dollar as the world's reserve currency.
However, amid growing speculation about the imminent decline of the US dollar's global dominance, several experts highlighted a critical flaw about the end of the petrodollar deal, pointing out there was never an agreement to begin with.
Paul Donovan, the chief economist at UBS Global Wealth Management, in a blog post said that the story had gained unexpected traction, serving as yet another example of the dangers of “confirmation bias.”
"The story seems to have started in the crypto world. Many crypto speculators desperately want to believe in the dollar’s demise," said Donovan.
Reports emerged that an agreement signed between Saudi Arabia and the US in 1974, being termed as the 'petrodollar deal', was not renewed and expired on June 9, 2024.
The economist explained that the arrangement may have been made due to Saudi Arabia's need to invest the excess revenue from its oil sales.
"The US and Saudi Arabia did establish a Joint Commission for economic cooperation in June 1974. This aim was to help Saudi Arabia spend its sudden glut of dollars on US products. In July of that year, Saudi agreed to invest oil dollars in US Treasuries (this was kept confidential until 2016)," said Donovan in the blog post.
He further added that oil has always traded in non-dollar currencies.
"In January 2023, Saudi indicated it was happy to negotiate oil sales in other currencies. The possibility changes little for financial markets. Saudi Arabia’s riyal remains pegged to the dollar, and its stock of financial assets are dollar focused. The dollar’s reserve status depends on how money is stored, not how transactions are denominated," said Donovan.
The relationship between the US and Saudi Arabia holds strong despite potential bargaining power for large buyers in the kingdom over currency choice.
Riyadh remains Washington's key ally in the Middle East world, particularly crucial for purchasing US arms, which are priced in dollars.
Despite China's substantial dollar reserves compared to Saudi Arabia's, attempts to reduce the dollar's global reserve currency status have had minimal impact.
The dominance of the dollar in global oil trade—from transactions to transport and insurance—is unlikely to change, even if Saudi Arabia were to consider selling oil in yuan.
This preference for dollars simplifies transactions, contrasting with India's experience buying Russian oil in local currency, where surplus accumulation raises concerns for Moscow about investment or lending options.
While Riyadh might explore using oil payments for Chinese exports, this is feasible with dollars as well. The oil industry's reliance on the dollar as the primary trade medium is unlikely to be challenged.
https://www.indiatoday.in/business/stor ... 2024-06-17
Crude propaganda? Rumours abound that Saudi Arabia is set to drop the petrodollar for the Chinese yuan
Saudi Arabia is rumoured to be dropping the US dollar for the Chinese yuan, but are the reports correct?
The New Arab Staff 13 June, 2024
Reports are gushing in about Saudi Arabia planning to drop the petrodollar for the Chinese yuan in an economic pivot toward East Asia and away from the US, but experts have stressed that the story is not as it seems with relations with Washington apparently on the mend.
Back in March, The Wall Street Journal reported that Saudi Arabia is considering to trade some futures with Beijing in the Chinese yuan with almost all oil exports handled in the dollar since 1974.
This was viewed as a boost for the struggling Chinese currency and also a message from Riyadh to Washington that it was unhappy with a lack of security support from the US.
The announcement has sparked a flurry of reports that Saudi Arabia was poised to adopt the yuan for its oil exports, which would be a remarkable economic and political win for Beijing.
BRICS News reported that a 1974 agreement between Washington and Riyadh had now expired with Saudi Arabia preparing to sell its oil in multiple currencies.
"Saudi Arabia's 50-year-old petrodollar agreement with the United States has expired, with no new agreement in place," BRICS News tweeted.
"Saudi Arabia will now sell oil in multiple currencies, including the Chinese RMB, Euros, Yen, and Yuan, instead ofexclusively in US dollars."
Many oil watchers reported this as a major shift in global energy trade and in economic power from the US to emerging countries in the Global South.
"Major blow to USD Hegemony! Saudi Arabia has refused to renew 50-yr Petrodollar agreement with the US," tweeted 'BhikuMhatre (Modi's Family)', an Indian finance professor.
"So now, Saudi is free to sell oil in multiple currencies, incl Euros, Yen, Yuan, Bharatiya Rupee etc. Major Blow to US!"
The problem is that no-such oil pact between Saudi Arabia and the US ever existed, at least not formally.
"As much as I'd like to believe this to be true, this 50-year expiry date on a petrodollar agreement is, as far as I can see and after quite a bit of research, purely made up," pointed out energy watcher Arnaud Bertrand.
While the US and Saudi Arabia did hold talks in 1974 on ending a Riyadh-led oil embargo on allies of Israel, including Washington, there is no evidence that an official pact with a 50-year lifetime exists.
Saudi Arabia has moved closer to China and Russia under Crown Prince Mohammed bin Salman, following bickering with the US over regional security issues, such as the removal of Yemen's Houthis from a terror list shortly after Joe Biden became president.
Riyadh has also made moves to join BRICS, an intergovernmental organisation founded by Brazil, India, China and South Africa supposedly as a counter-weight to US economic hegemony.
Relations between the US and Saudi Arabia, two long-time allies, have improved in recent months with talks on an unprecedented defence treaty with Washington, which will likely hinge on Riyadh normalising ties with Israel.
In a region long-dominated by the US, the Gulf has seen a sharp increase in investments, economic agreements, and even military ties with China, leading to friction with Washington.
https://www.newarab.com/news/saudi-arab ... inese-yuan
De quoi dégonfler la rumeur lancée par Supert :
[quote] [b]Did Saudi Arabia really end petrodollar deal? UBS economist clarifies[/b]
Reports of Saudi Arabia ending the petrodollar deal sparked online discussions about the potential decline of the dollar as the world's reserve currency.
Jun 17, 2024 Written By: Sonu Vivek
Reports of Saudi Arabia ending the longstanding petrodollar deal with the US emerged last week, sparking online discussions about the potential decline of the dollar as the world's reserve currency.
However, amid growing speculation about the imminent decline of the US dollar's global dominance, several experts highlighted a critical flaw about the end of the petrodollar deal, pointing out there was never an agreement to begin with.
Paul Donovan, the chief economist at UBS Global Wealth Management, in a blog post said that the story had gained unexpected traction, serving as yet another example of the dangers of “confirmation bias.”
"The story seems to have started in the crypto world. Many crypto speculators desperately want to believe in the dollar’s demise," said Donovan.
Reports emerged that an agreement signed between Saudi Arabia and the US in 1974, being termed as the 'petrodollar deal', was not renewed and expired on June 9, 2024.
The economist explained that the arrangement may have been made due to Saudi Arabia's need to invest the excess revenue from its oil sales.
"The US and Saudi Arabia did establish a Joint Commission for economic cooperation in June 1974. This aim was to help Saudi Arabia spend its sudden glut of dollars on US products. In July of that year, Saudi agreed to invest oil dollars in US Treasuries (this was kept confidential until 2016)," said Donovan in the blog post.
He further added that oil has always traded in non-dollar currencies.
"[color=#FF0000]In January 2023, Saudi indicated it was happy to negotiate oil sales in other currencies. The possibility changes little for financial markets. Saudi Arabia’s riyal remains pegged to the dollar, and its stock of financial assets are dollar focused[/color]. The dollar’s reserve status depends on how money is stored, not how transactions are denominated," said Donovan.
The relationship between the US and Saudi Arabia holds strong despite potential bargaining power for large buyers in the kingdom over currency choice.
Riyadh remains Washington's key ally in the Middle East world, particularly crucial for purchasing US arms, which are priced in dollars.
Despite China's substantial dollar reserves compared to Saudi Arabia's, attempts to reduce the dollar's global reserve currency status have had minimal impact.
The dominance of the dollar in global oil trade—from transactions to transport and insurance—is unlikely to change, even if Saudi Arabia were to consider selling oil in yuan.
This preference for dollars simplifies transactions, contrasting with India's experience buying Russian oil in local currency, where surplus accumulation raises concerns for Moscow about investment or lending options.
While Riyadh might explore using oil payments for Chinese exports, this is feasible with dollars as well. The oil industry's reliance on the dollar as the primary trade medium is unlikely to be challenged.
[/quote]
https://www.indiatoday.in/business/story/did-saudi-arabia-really-end-petrodollar-deal-with-us-ubs-economist-clarifies-2554162-2024-06-17
[quote] [b]Crude propaganda? Rumours abound that Saudi Arabia is set to drop the petrodollar for the Chinese yuan[/b]
Saudi Arabia is rumoured to be dropping the US dollar for the Chinese yuan, but are the reports correct?
The New Arab Staff 13 June, 2024
Reports are gushing in about Saudi Arabia planning to drop the petrodollar for the Chinese yuan in an economic pivot toward East Asia and away from the US, but experts have stressed that the story is not as it seems with relations with Washington apparently on the mend.
Back in March, The Wall Street Journal reported that Saudi Arabia is considering to trade some futures with Beijing in the Chinese yuan with almost all oil exports handled in the dollar since 1974.
This was viewed as a boost for the struggling Chinese currency and also a message from Riyadh to Washington that it was unhappy with a lack of security support from the US.
The announcement has sparked a flurry of reports that Saudi Arabia was poised to adopt the yuan for its oil exports, which would be a remarkable economic and political win for Beijing.
BRICS News reported that a 1974 agreement between Washington and Riyadh had now expired with Saudi Arabia preparing to sell its oil in multiple currencies.
"Saudi Arabia's 50-year-old petrodollar agreement with the United States has expired, with no new agreement in place," BRICS News tweeted.
"Saudi Arabia will now sell oil in multiple currencies, including the Chinese RMB, Euros, Yen, and Yuan, instead ofexclusively in US dollars."
Many oil watchers reported this as a major shift in global energy trade and in economic power from the US to emerging countries in the Global South.
"Major blow to USD Hegemony! Saudi Arabia has refused to renew 50-yr Petrodollar agreement with the US," tweeted 'BhikuMhatre (Modi's Family)', an Indian finance professor.
"So now, Saudi is free to sell oil in multiple currencies, incl Euros, Yen, Yuan, Bharatiya Rupee etc. Major Blow to US!"
The problem is that no-such oil pact between Saudi Arabia and the US ever existed, at least not formally.
"As much as I'd like to believe this to be true, this 50-year expiry date on a petrodollar agreement is, as far as I can see and after quite a bit of research, purely made up," pointed out energy watcher Arnaud Bertrand.
[color=#FF0000]While the US and Saudi Arabia did hold talks in 1974 on ending a Riyadh-led oil embargo on allies of Israel, including Washington, there is no evidence that an official pact with a 50-year lifetime exists.
[/color]
Saudi Arabia has moved closer to China and Russia under Crown Prince Mohammed bin Salman, following bickering with the US over regional security issues, such as the removal of Yemen's Houthis from a terror list shortly after Joe Biden became president.
Riyadh has also made moves to join BRICS, an intergovernmental organisation founded by Brazil, India, China and South Africa supposedly as a counter-weight to US economic hegemony.
Relations between the US and Saudi Arabia, two long-time allies, have improved in recent months with talks on an unprecedented defence treaty with Washington, which will likely hinge on Riyadh normalising ties with Israel.
In a region long-dominated by the US, the Gulf has seen a sharp increase in investments, economic agreements, and even military ties with China, leading to friction with Washington.
[/quote]
https://www.newarab.com/news/saudi-arabia-about-drop-petrodollar-chinese-yuan