BRICS Influence in Oil Sector Grows: Is the US Dollar in Danger?
The global oil market is undergoing a significant shift, with the BRICS nations (Brazil, Russia, India, China, and South Africa), and their newly expanded membership, increasingly asserting their influence. This growing power in the oil sector raises questions about the future of the US dollar as the dominant currency for oil transactions.
20 de sept. de 2025: BRICS is flexing its arms as its influence in the oil sector grows rapidly after the expansion in August. The induction of oil-producing countries like Saudi Arabia, the UAE significantly strengthens the group's position and ability to reshape the energy landscape.
BRICS and De-Dollarization in the Oil Market
The BRICS nations have been actively exploring alternatives to the US dollar in international trade, particularly within the oil sector. This push for de-dollarization is driven by a desire for greater economic independence and a reduced reliance on the US financial system.
5 de sept. de 2025: A recent report from JP Morgan on the de-dollarization process initiated by BRICS highlighted that the U.S. dollar is slowly losing dominance in the global oil sector. This gradual shift, while not a complete replacement, indicates a potential long-term trend.
BRICS's Challenge to the Petrodollar: A Pragmatic Shift
The concept of the petrodollar, where oil is primarily traded in US dollars, has been a cornerstone of US economic power for decades. However, the BRICS nations are challenging this status quo through initiatives like promoting the use of local currencies in oil trade.
Historically and geopolitically, this research looks at how the BRICS nations-Brazil, Russia, India, China, and South Africa-along with the recent new entrants, attempt to... create a more multi-polar global financial system. Economic practicality and geopolitical need are the driving forces behind the shift away from a dollar-centric system.
Is the US Dollar in Imminent Danger?
While the BRICS nations are making strides in challenging the petrodollar, it's important to note that a complete replacement of the US dollar is unlikely in the short term. The dollar's established infrastructure and global acceptance still provide significant advantages.
Therefore, the BRICS idea of using local currency for oil and not the US dollar is not progressing but failing. Also Read: BRICS: 5 Countries Pay 93% of Trade in... Local currencies for trade within the bloc, suggesting a more nuanced approach than a complete abandonment of the US dollar. The actual implementation of BRICS plans remains an ongoing process.
The growing influence of the BRICS nations in the oil sector presents both opportunities and challenges. The long-term impact on the US dollar and the global financial system remains to be seen, but it is clear that the BRICS are playing an increasingly important role in shaping the future of the energy market.