Saudi in talks with China to accept yuan for oil sales

Saudi Arabia is in active talks with Beijing to price its some of its oil sales to China in yuan, a move that could cripple not only the petrodollar’s dominance of the global petroleum market, and mark another shift by the world’s top crude exporter toward Asia, but also a move aimed squarely at the heart of the US financial system, which has taken advantage of the dollar’s reserve status by printing as much dollars as needed to fund government spending for the past decade.

The talks with China over yuan-priced oil contracts have been off and on for six years but have accelerated this year as the Saudis have grown increasingly unhappy with decades-old U.S. security commitments to defend the kingdom.

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