The addition of the Kingdom of Saudi Arabia (KSA) to the BRICS+ at a summit on August 24 came as a surprise to many, but analysts say it will ...

Addition of KSA, UAE, Iran means share has doubled to 42% of crude oil output in 2022. "Saudi pricing oil exports to China and India in non-dollar currencies does not spell the end of the dollar as the international currency of choice,” says ING. Trade within bloc makes trade hard to sanction by West.

  • Bernie EcclestonedEnglish
    51·
    1 year ago

    This is going to turn into just bartering. Saudi has no food, China has no oil, Brazil owes China gazillions and they’ll pay in soybeans.

    • Pons_Aelius@kbin.social
      3·
      1 year ago

      This is going to turn into just bartering.

      If it avoids the use of the USD, it is still better for the BRICS goals.

      • Bernie EcclestonedEnglish
        12·
        1 year ago

        How do they get around that global commodities are stil priced in dollars

        • Pons_Aelius@kbin.social
          31·
          1 year ago

          Are you honestly asking?

          By agreeing a price/exchange rate among themselves.

          It is not rocket science. Humans managed to trade with each other for thousands of years before the USA existed, I am sure they will work something out.

          • Bernie EcclestonedEnglish
            12·
            1 year ago

            And that price/ exchange rate is still going to be tied to every other commodity, and energy, that’s priced in dollars…

              • Bernie EcclestonedEnglish
                22·
                1 year ago

                Ok, so you agree to sell/exchange beans for oil.

                If there is a difference between the value of that to the USD amount then there’s an arbitrage opportunity.

                Russia is already selling its oil at massive discounts to Brent crude or West Texas price to India and China. You think India isn’t profiting when that crude has been refined and it loses its Russia label?

                Oh look, it is.

                This cheaper oil has found new markets — including India, which now purchases nearly two million barrels a day, roughly 45 percent of its imports, according to the International Energy Agency.

                In addition to stoking India’s economy, cheap Russian oil has given India a lucrative business refining that crude and exporting the products to other regions that suddenly need fresh energy supplies. That includes the European Union, which has banned direct oil purchases from Russia.

                https://www.nytimes.com/interactive/2023/06/22/business/india-russia-oil.html