What! 90% of Oil Sales No Longer Being Settled in US Dollars??

Hello everyone and welcome to Geopolitical Trends. My name is David Oualaalou. So good to be with you as always. As an analyst, I ask, are global oil sales no longer settled in the US dollar? In this video, I'm going to provide you my insights into how the geopolitical shift in the global order is accelerating basically a change into the global financial structure when it comes to the energy market or energy transactions. So let's dive in into this fascinating development. So, so the imminent BRICS— Brazil, Russia, India, China, and South Africa— expansion could certainly shift the geopolitical power balance, but it is also set to have massive implications for us here in the United States, especially financially. So, and specifically also when you consider the inclusion of certain countries now into the BRICS economic alliance could lead to— get this, guys— to 90%. Yeah, you heard me, 90% of oil sales no longer being settled in in the US dollar. That's major. So the oil industry, by the way, is one of the most powerful branches in the world economy, and the changes in the benchmark— basically oil prices— have great implications for most manufacturing sectors and consumers. So I'm gonna give you just a quick example. In 2021, the total revenue of the United States, just for our country here, the total revenue of the United States oil and gas industry came to about $211.9 billion. So it was an increase from the previous year, and this is just for the US, okay? So when you put this within, under the lenses of the global setting, per se, a host of countries now have sought entry into the BRICS alliance, and many of them hold prominent oil reserves. So you put the two and two together and figure it out. Additionally, the inclusion of, let's say, a country like Saudi Arabia and its subsequent shift away from the US dollar not only could but will, in my opinion, alter the international trade market. It's a reality, it's a fact. Additionally, it could also fast-track de-dollarization, which notable, you know, it has— it will have notable ramifications for us here in the United States. I'm sure a lot of us Americans are not aware of what's going on, but it's the reality of it. So the next question I need to ask is, as an analyst, is What's on the horizon vis-à-vis the energy market? So could BRICS de-dollarization most, uh, or de-dollarize rather, most oil settlements? And I am seeing the trends leading me to say most likely the case. So, so the year, this year that is, has been a rather an interesting one for the BRICS. A bloc. So the collective has sort of undoubtedly faced its most vital moments in time, facing expansion and prominent economic policies. Moreover, there are two things that could have a massive impact on the geopolitical sector: one, transforming the status quo, and two, shifting of a balance of power. That's what's major about all this. So one vital aspect, and I want you guys to get this one, one vital aspect, uh, of that depends on what nations are included in the bloc, BRICS bloc, that is. So the bloc's expansion efforts in, in, uh, as we speak. So specifically, the BRICS alliance could lead, like I mentioned earlier, to to 90% of oil sales no longer being settled in the US dollar. However, that will hinge on the inclusion of countries like Saudi Arabia, Iran, Algeria, among other major oil-producing countries in the bloc. So at the same time, many are asking whether it is time to replace India sooner than later. What do you guys think? And just brief history here. In the 1970s, Saudi Arabia— as you may know, Saudi Arabia and the Nixon administration struck a notable deal. Subsequently, 50 years later, the country primarily traded in the US dollar. Moreover, OPEC, the Oil Producing Exporting Countries, allows the entire industry This is the key, the entire industry to utilize the US dollar, increasing the prominence of the currency on the international level and international markets. So Iran, in this case, I see Iran as another country that could really push for that de-dollarization when it joins BRICS. As a matter of fact, speaking of Iran Russia says that Iran is likely to join at the upcoming summit, which will be about a week and a half from today, or it will be on August 23rd or August 24th, uh, on August 25th. So, yes, Saudi Arabia is now widely believed to be a strong candidate for BRICS inclusion. Additionally, it is already sort of expected to become valuable part of the BRICS New Development Bank. So as a result, it is likely to assist the de-dollarization effort that the bloc has embraced over the last year. Interesting dynamics. And this is, again, guys, this is what geopolitics is all about. So this will severely impact the international prevalence of the US dollar and hinder its It's a viability, it's reality. We can't shy away from it. So moreover, the other potential additions to the, to the, uh, uh, block represents about 60% of global oil reserves. That is another key. So therefore, as, as a result, when you analyze certain things, you have to think in terms of results. So the result is the up to the optimal currency of the BRICS decides upon by which we will see a massive increase in utilization of that currency. So setting forth a strong trajectory for the BRICS economic bloc, and whether that means using the BRICS currency, alternative currency that's going to create or specific local currencies, the economic shift, shift will be notable whether we like it or not, because we can't, we can't pretend. So that's the reality, the way I see it. So if you guys like the content of this video, please hit that like button and also subscribe. And don't remember— don't, don't forget to smash that notification button. I would really appreciate it. So as always, guys, remember, geopolitics impact your daily life in more ways than one. Till next time, bye-bye.