Saudi Arabia Threatens To Drop Dollar For Oil Trades
Regardless of how positively or negatively one might be inclined to think of the NOPEC bill, Saudi Arabia has this nuclear option only once. They may continue selling their oil for whatever currency they like but the arrangement with the US also provides a veneer of stability for the Kingdom. China and/or Russia could not step into this role if they wanted. Their power projection capabilities are severely limited. Besides, cutting those ties would be a nasty shock to the US but the US economy is infinitely more entrepreneurial than any economy in the Gulf. It would take the bloody nose, stumble, redress itself and likely emerge stronger from it in the long term. That’s the nature of entrepreneurs. Don’t mess …
Saudi Arabia has threatened the United States to stop using dollars for its oil trades in an attempt to discourage legislators from passing a bill dubbed NOPEC aimed at holding OPEC liable for cartel practices under U.S. law.
