Its save to assume the saudis didn't renew, because such a deal being renewed is worth of some public ceremony. Doesn't have to mean that Saudis will not accept dollars for oil payments tho. Or maybe they are still negotiating the new rules of a new deal.
BRICS & New World Order Thread
- Thread starter Strangelove
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Wasn't the original deal done in secret? I see no reason why this renewed deal is publicly announced anyways.
Saudis just holding up the renewal to get more American concessions?
Why won't China announce that it will trade in oil only in RMB or the seller's currency?
I don't believe that news is true as there is formally such a pact between KSA and USA
There were such agreements, but I didn't see specifically 50 years mentioned anywhere officially.
To be honest I think that Saudis were already selling oil in non-USD currencies for quite a while.
Apparently it was auto renewed every 5 years if no one object to it, guess this year it's different from the past.
Saudi will still accept US $ for oil, just not going to be exclusively anymore.
According to this article in 2016 the agreement was put into secrecy at the request of SA
It took several discreet follow-up meetings to iron out all the details, Parsky said. But at the end of months of negotiations, there remained one small, yet crucial, catch: King Faisal bin Abdulaziz Al Saud demanded the country’s Treasury purchases stay “strictly secret,” according to a diplomatic cable obtained by Bloomberg from the National Archives database.
The agreement consists only two parts, pricing oil sales in dollor and buying treasury with surplus dollar income. With one part being a secret, the whole agreement has to be kept secret.
Another thing worth to remember is that all public discussion of the agreement talked about "pricing SA's oil export in dollar exclusively". Without seeing the text of the agreement, I must say that SA's obligation is only to set the price in dollar and buy US treasure bond in USD. Without breaking the agreement SA can take other currencies as payment such as EURO and RMB, then convert them to USD to buy US bond. I think SA has been selling oil to EU in EURO for a long time.
It took several discreet follow-up meetings to iron out all the details, Parsky said. But at the end of months of negotiations, there remained one small, yet crucial, catch: King Faisal bin Abdulaziz Al Saud demanded the country’s Treasury purchases stay “strictly secret,” according to a diplomatic cable obtained by Bloomberg from the National Archives database.
The agreement consists only two parts, pricing oil sales in dollor and buying treasury with surplus dollar income. With one part being a secret, the whole agreement has to be kept secret.
Another thing worth to remember is that all public discussion of the agreement talked about "pricing SA's oil export in dollar exclusively". Without seeing the text of the agreement, I must say that SA's obligation is only to set the price in dollar and buy US treasure bond in USD. Without breaking the agreement SA can take other currencies as payment such as EURO and RMB, then convert them to USD to buy US bond. I think SA has been selling oil to EU in EURO for a long time.
If eu has been buying oil in euro for so long, then why was it such a big deal that rmb payment for oil hitting 20% last year? Clearly, euros have at least that much import demand. Why was euro not used more previously?