Foreign media: "Saudi Arabia has three ways to deal with the United States" website | Russia | United States
On June 11th, the website of the Russian newspaper "Perspectives" published an article by Olga Samofanova titled "Three Measures of Saudi Arabia Against the United States". The full text is excerpted as follows:
Saudi Arabia said that if the United States attempts to punish Saudi Arabia due to rising oil prices, the United States will face "serious economic consequences.". This happened last autumn. Since then, Saudis have been doing things that the United States dislikes, but Americans have chosen to silently endure. What is America afraid of?
Stanislav Mithrahovich, Chief Expert of the Russian National Energy Security Fund and Researcher at the Russian University of Finance and Economics, said, "Saudi Arabia has realized that it now has more ability to act independently and not rely on the United States. This does not mean that Saudis have severed all relations with Americans, but Saudi Arabia now has greater freedom of action than in 1991, 2001, or 2011."
At the same time, the threat posed by the United States to Saudi Arabia has never been translated into practical action, and they are still trying to reach an agreement with Saudi Arabia. What economic ace do Saudis have to resist pressure from the United States?
Firstly, as one of the world's largest oil producing countries, Saudi Arabia may seriously undermine or even destroy the dominance of the petrodollar. Abandoning the US dollar in oil trading is sufficient. Riyadh has begun to move in this direction, demonstrating its strength to the United States.
Ironically, it was Saudi Arabia that made the world accept petrodollars in the 1970s. In exchange for US security, the Saudis sold oil in US dollars and established a close relationship between oil and the US dollar.
This is a street view of Riyadh, the capital of Saudi Arabia, captured on August 14, 2022.
Alexander Tymofeyev, Associate Professor at Plekhanov University of Economics in Russia, said, "If Saudi Arabia completely rejects the US dollar, then the United States will have to negotiate in all areas, not pressure, but compromise and compromise."
"The United States is no longer an important oil market for Saudi Arabia, and China is now the largest buyer of Saudi oil. The large number of cars owned by China and India means that their fuel demand exceeds that of countries such as the United States and Japan. When Saudi Arabia can complete oil exports through the Indian Ocean and South China Sea and settle all transactions in its own currency, what is the point of long-distance transportation of oil products to the United States?" said Timofeyev.
But for the United States, Saudi Arabia is important. This is not even a problem with Saudi oil products, although they provide energy for thousands of gas stations in the United States and Japan. For Washington, the influence of Arabs on world prices is more important. The price of gasoline in the US market directly depends on world prices: the higher the oil price, the more ordinary Americans and businesses spend. The popularity of automobiles in the United States is very high, so any increase in oil prices in the world market will be reflected within the United States. Following oil prices, every product will become expensive because cars are the main logistics tool.
Secondly, Saudi Arabia also has another economic ace - massive investment in the US economy.
Mithrahovich said, "Saudi Arabia may reduce its US dollar investment in the US economy and even withdraw Saudi assets such as refineries, bank accounts, and port yachts from the US."
Finally, Saudis can also harm the United States through closer alliances with Russia, China, and other developing countries. "Saudi Arabia may consider joining the BRICS or Shanghai Cooperation Organization, or participating in other projects related to establishing alternative financial systems," Mithrahovich said. According to reports, Saudi Arabia is in talks to join the New Development Bank of the BRICS countries.
