Saudi Arabia Mulls Pricing of China Oil Sales in Yuan: Report

The move would be a challenge to the U.S. dollar, which has dominated as the medium of exchange for the oil trade for decades.

AccessTimeIconMar 15, 2022 at 2:12 p.m. UTC
Updated Mar 15, 2022 at 6:48 p.m. UTC

Stephen Alpher is CoinDesk's co-regional news chief, Americas. He holds BTC and ETH above CoinDesk’s disclosure threshold of $1,000.

Saudi Arabia is in discussions with Beijing about pricing some Saudi oil sales to China in yuan instead of dollars, according to a Wall Street Journal report, citing people familiar with the matter.

  • Chatter about this sort of arrangement has been ongoing for several years, but recent events have brought a new urgency to talks, according to the report, which says the Saudis are questioning longstanding U.S. security commitments to the kingdom.
  • Among the issues are what the Saudis believe to be less-than-enthusiastic support for the war in Yemen, the White House's attempt at an Iran nuclear deal and shock at the American withdrawal from Afghanistan, the report said.
  • China is a buyer of more than 25% of Saudi Arabia's exported oil, according to the story.
  • The news would seemingly be of interest to the bitcoin (BTC) and gold markets, but, for now, there's little reaction, with the price of bitcoin staying in the mid-$38,000 area, and gold remaining lower by 2.1% for the day at $1,918 per ounce.


DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Stephen Alpher is CoinDesk's co-regional news chief, Americas. He holds BTC and ETH above CoinDesk’s disclosure threshold of $1,000.

CoinDesk - Unknown

Stephen Alpher is CoinDesk's co-regional news chief, Americas. He holds BTC and ETH above CoinDesk’s disclosure threshold of $1,000.