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Is OPEC close to using Petro-Yuan as Russia commences talks with Saudi Arabia?
June 18, 2015
Russian President Vladimir Putin and Saudi leader
Within the past 10 days, Russia and China have concluded two historic energy agreements in which both oil and natural gas will now be sold using the Yuan currency. And with Russia beginning oil talks with Saudi Arabia on June 18 during the economic forum currently being held in St. Petersburg, the next step towards lessening the use of the dollar in global energy purchases could very well be underway.
Nine days ago, Russia and China reached a historic milestone as the Petro-Yuan entered into the global economy through a new program instituted by Gazprom Neft, where the third largest oil company in Russia began selling its production solely in RMB, and provided the rest of the global community the chance to purchase oil in a currency other than the U.S. dollar. Yet the significance of this agreement is only half the story as China released new data three days later that showed their reliance upon Saudi oil was waning at the same time their imports from Russia were increasing.
And it appears now that this trend could be what is bringing Saudi Arabia to Russia, since production cuts to raise prices are off the table, and not part of the primary discussions.
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June 18, 2015
Russian President Vladimir Putin and Saudi leader
Within the past 10 days, Russia and China have concluded two historic energy agreements in which both oil and natural gas will now be sold using the Yuan currency. And with Russia beginning oil talks with Saudi Arabia on June 18 during the economic forum currently being held in St. Petersburg, the next step towards lessening the use of the dollar in global energy purchases could very well be underway.
Nine days ago, Russia and China reached a historic milestone as the Petro-Yuan entered into the global economy through a new program instituted by Gazprom Neft, where the third largest oil company in Russia began selling its production solely in RMB, and provided the rest of the global community the chance to purchase oil in a currency other than the U.S. dollar. Yet the significance of this agreement is only half the story as China released new data three days later that showed their reliance upon Saudi oil was waning at the same time their imports from Russia were increasing.
And it appears now that this trend could be what is bringing Saudi Arabia to Russia, since production cuts to raise prices are off the table, and not part of the primary discussions.
[You must be registered and logged in to see this link.]
