China could shatter petrodollar by compelling Saudi Arabia to trade oil in yuan

[Jlaw]

China is the largest holder of dollars in the world. US is their largest market. America still provides investment and technology for them

And what technology is China getting from US ?

 

[VCheng]

@Hamartia Antidote Oh no, the dollar died - again. What will we do?

 

[dreamer4eva]

KSA, Russia, Iran, Venezuela, Algeria and Iraq are the largest oil producers in the world. Talking about KSA, i don't know that China can do it or not but if they succeed, petrol will collapse since except for KSA, other mentioned countries are all Russian allies or at it's worst condition one of the best friends. And dollar will go down due to USA's foreign debt. Man! that will be the end of USA's dominance in the world market.
Modi is wasting his time with Trump

Yanks have Saudis by balls due to petro dollar. Where you reckon all the wealth of Arab elite parked? Yep, its in US banking system. Remember Iran and India used their local currencies when yanks put sanctions and Indians could not buy Iranian oil. This is only area where Chinese will need Indian help eventually in the longer run. No matter what people say, India do have an independent foreign policy, and IMO, we are using China card to get some decent tech know how from Americans especially in military sector, and more importantly, want to use their influence at world level to our advantage. Trump is aberration and don't think would be able to complete his full tenure, and even if he does, I bet there won't be a second term for him.

 

[nang2]

not until Saudis think holding yuan denominated assets is a safe investment.

 

[Hamartia Antidote]

not until Saudis think holding yuan denominated assets is a safe investment.

Even if they did have a reason it wouldn't last long. How long do you really think it will take before China cuts its oil imports drastically by phasing in electric cars? Car companies are lining up to join the all-electric bandwagon. The writing is on the wall.

 

[ChineseTiger1986]

What China wants to see is the geopolitical reconciliation between KSA and Russia/Iran.

 

[wiseone2]

I prefer to see Iran sells her oil/gas to countries like Pakistan, Indonesia, Malaysia, Egypt, Turkey etc that have huge labor. US pressure always keeps them away from us. Look at IP pipe line, Iran changed it's direction towards her own cities in S.east because of Pakistan's retreat from that lawful contract. Put our mutual religion which makes us religious brothers aside, you denied your own benefits by that retreat.

If you price gouge your customers nobody is buying from Iran

 

[Chhatrapati]

Actually Over A Passage Of Time China Has Been Offloading It's Dollar And Buying Lots of Gold

Yeah, I heard that too. But, dollar is still the reserve currency around the world. I don't think anyone will move away from this comfortable position. The rise and fall in USD also affects gold. If dollar falls, the gold prices goes too high, and if the dollar strengthens then gold falls.

there around 50 years worth of oil left...50 years to make money....I think Muslim nations might make a megapact and form one single super-state to efficiently distribute the profits of the last 50 years of oil...and then they would be a formidable superpower..who knows, it might be like the fabled Rashidun Caliphate 2.0...Big expectations from Muslims..A Muslim superstate is for the greater good of the world

The 50 years of oil left is an old story. It's not true since, there is a lot of new oil reserves coming up. The estimate was set higher and higher.

 

[Jackdaws]

China has an opaque accounting system and who knows the Chinese yuan might actually be as worthless as Reichmarks in 1923.

 

[Chhatrapati]

How come?
I am saying that dollar will go down and on the other hand Yuan will rise. I don't think that petrol would have a valuable costumer if mentioned countries plus KSA trade in Yuan. Yes, that will create great shock, but China can dodge it easily.

Though we are talking about a possibility, indeed, US+EU will resist.

RMB is not a reserve currency to begin with. When KSA wants to trade with other countries, they need USD. That's the case of every other country. Remember Iran and India traded in gold when there was sanctions on Iran. They can trade using RMB with China, as long as they trust China.

 

[Juggernaut_Flat_Plane_V8]

Yeah, I heard that too. But, dollar is still the reserve currency around the world. I don't think anyone will move away from this comfortable position. The rise and fall in USD also affects gold. If dollar falls, the gold prices goes too high, and if the dollar strengthens then gold falls.


The 50 years of oil left is an old story. It's not true since, there is a lot of new oil reserves coming up. The estimate was set higher and higher.

Its a very recent story from 2014...including oil sands and as such...British Petroleum, world's foremost Energy company, made the prediction ...and this is based on scientific data; and not some chodu prediction by some Jyotirvid

 

[Chhatrapati]

Its a very recent story from 2014...including oil sands and as such...British Petroleum, world's foremost Energy company, made the prediction ...and this is based on scientific data; and not some chodu prediction by some Jyotirvid

Like I said, it's always the same story they have been selling for more than 20 years. So, if that prediction is true then the oil should run out at around 2030. These are just speculations run by the oil cartels.

You can have a good read.
https://www.linkedin.com/pulse/why-we-always-have-50-years-oil-reserves-left-world-mathias-jansson

 

[Juggernaut_Flat_Plane_V8]

there is no selling only scientific research and assessment...The methodical way the whites do scientific research is beyond the comprehension of Indians who prefer to believe in yogic supernormal powers and astrological predictions

 

[Han Patriot]

Ouuchh I can feel some acidity with our Indian members here. India is nothing but an American pawn now.

 

[Taimoor Khan]

not until Saudis think holding yuan denominated assets is a safe investment.

"China has already said it wants to start a crude oil futures contract priced in yuan and convertible into gold."

This is the key. Basically, the Chinese will buy Saudi oil using their yauns, with those yauns Saudis will go to Shanghai stock exchange and buy gold.

Gold standard is coming back in near future with new price indexing. Expect price of gold to rise in near future. Chinese wont be selling their horded gold for the suppressed cheap gold prices set by western financial institutions.