Saudi Arabia puts positive spin on yuan in oil exports

Saudi Arabia is reportedly in active talks with Beijing to price part of its oil sales to China in yuan.

Saudi Arabia is in active talks with Beijing to price part of its oil sales to China in yuan, the Wall Street Journal reported, citing sources close to the matter.

In the event of such an agreement, the dominance of the US dollar in the global oil sunday is expected to decrease and the world's largest crude exporter will turn to Asia.

Saudi Arabia's six-year talks with China on yuan-priced oil contracts have gained momentum this year. It is estimated that some political developments have accelerated this process.

Dec reasons include the lack of support for the US intervention in the Yemeni civil war and the Biden administration's attempt to reach an agreement with Iran on the nuclear program. On the other hand, Saudi officials also expressed shock at the sudden withdrawal of the United States from Afghanistan last year.

Taking into account that China buys more than 25 percent of the oil exported by Saudi Arabia, if there is pricing in yuan, these sales will have positive repercussions on the Chinese economy.