A PYMNTS Company

Saudi Arabia: Gov denies it threatened to strip the US dollar from oil trading

By  |  April 8, 2019

Saudi Arabia on Monday, April 8, denied a report that the kingdom is threatening to sell its oil in currencies other than the US dollar if American lawmakers pass legislation targeting OPEC.

Reuters reported last week that the Saudis had raised the issue within OPEC and with US officials. Most crude oil is traded in US dollars, and selling crude in other currencies could chip away at the greenback’s dominant role in the international financial system.

On Monday, the Kingdom called the report inaccurate, saying it does “not reflect Saudi Arabia’s position on this matter.”

“The Kingdom has been trading its oil in dollars for decades which has served well the objectives of its financial and monetary policies,” the Ministry of Energy, Industry and Mineral Resources said in a statement.

According to Reuters, the plan to marginalize the dollar in oil trading was a response to potential passage of the bipartisan No Oil Producing and Exporting Cartels Act in Congress. The so-called NOPEC legislation would enable the Justice Department to sue OPEC for coordinating production.

Full Content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.