[ad_1]
Qatar’s overseas minister has stated the battle in Ukraine, and its geopolitical ramifications, is pushing some nations to discover new methods of pricing oil — not within the greenback.
The feedback, made Saturday by Mohammed bin Abdulrahman Al-Thani, come after a Wall Avenue Journal report that Saudi Arabia is in accelerated talks with China to just accept yuan as a substitute of {dollars} for oil that Beijing buys.
Talking to Hadley Gamble on the Doha Discussion board, Al-Thani stated he did not count on such a system to be launched within the close to time period, however confused that the financial penalties of the Ukraine warfare had been hitting some nations arduous.
“Truthfully talking, have a look at what occurs and the dynamics round us proper now. I am certain there are a number of different nations who’re sad with what’s occurred and the results of the Ukrainian-Russian disaster, particularly the financial penalties,” he stated.
“And they’re going to look and discover a parallel system [of pricing oil] … going to hedge, at the very least, for them economically. In order we live by means of a transition, this transition is not going to be solely a political transition however it’s an financial transition as properly.”
Final week, Gal Luft, co-director of the Institute for the Evaluation of World Safety, advised CNBC the U.S.’ stinging financial penalties may push nations away from the greenback — the foreign money oil is usually priced in.
The sanctions embrace successfully freezing Russia’s central financial institution reserves and disconnecting Russia from the interbank messaging system, SWIFT.
“On the one hand, you might be sanctioning proper and left. Alternatively, you need nations to purchase your Treasurys and finance your debt. That is not a sustainable state of affairs,” Luft stated.
Oil diversification
Qatar’s Al-Thani additionally stated the nation was “stepping up” and holding talks with European nations about boosting fuel provides.
“We’re stepping up and serving to some European companions who’re beginning to undergo from some fuel shortages … with the restricted quantity that now we have,” he stated, stressing that almost all of its fuel contracts are long-term and so cannot be modified.
It comes as European nations search to diversify their power provide away from Russia – significantly fuel. The EU imported 45% of its fuel from Russia final yr, based on the Worldwide Power Company.
On Friday, the U.S. stated it was trying to work with companions — which embrace Qatar — to supply at the very least 15 billion cubic meters extra of liquified pure fuel to Europe this yr, with that quantity set to extend going ahead.
Nevertheless Al-Thani stated that nobody power provider can substitute one other.
“I believe the easiest way ahead is diversifying the supply of provide,” he added. “This would be the solely method ahead. We’re in dialogue with a number of different European nations proper now, for brand spanking new long-term contracts. And this dialogue is simply ongoing.”
[ad_2]
Source link