What if Saudi Arabia just stops pricing oil in dollars?
Tom KirkmanIndependent Project Manager
What if Saudi Arabia and OPEC just stop pricing oil in U.S. dollars?
This is essentially what U.S. politicians are daring OPEC and Saudi Arabia to do.
This is simply another way that stupid U.S. politicians will accelerate the international move away from the dollar.
Stupid U.S. politicians appear to be getting even stupider. I didn’t think that was even possible, but I keep being proven wrong, again and again and again.
Most U.S. (and most Western) politicians are simply energy illiterate.
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“In early May, the U.S. House of Representatives Committee on the Judiciary was reportedly considering a bill to pressure the OPEC oil producers’ group to stop making output cuts by revoking the sovereign immunity that has protected OPEC+ members and their national oil companies from lawsuits over price collusion.
(The committee previously passed the bill in 2018, 2019 and 2021.)
The OPEC Basket Price has hovered in the mid $70s, not historically high, though U.S. politicians like to talk down the price of gasoline before the summer driving season begins.
(Saudi Arabia needs a price of $80.90 USD to balance its budget, and fund the diversification of its economy.)
… One reason may be the good news out of the Middle East:
– a rapprochement between Iran and Saudi Arabia (with Chinese mediation);
– Egypt and Iran starting to normalize ties (with mediation by Iraq);
– Syria rejoining the Arab league;
– the United Arab Emirates and Iran in talks to promote ties, and
– the possibility for energy cooperation between Iraq and Iran.
》The bill may be retaliation against the Arab OPEC countries, and a warning to others, for normalizing ties with Iran and Syria, under the color of protecting U.S. consumers.
》It also avoids a discussion about the Biden administration policy of limiting oil and natural gas production, though lately the administration has approved limited drilling in federal lands.
… Thus, Washington’s attack on the economic engine of the Middle East, petroleum, and use of sanctions to halt attempts to end conflict and alienation between the OPEC Arabs and Iran and Syria.
》It is important [for U.S. politicians] that peace not break out as that would
– depress weapon sales,
– increase regional economic diversification and integration and reduce the need for Washington’s “solutions,” and
– introduce to the region new economic and political players, such as China and Turkey. …”