The BRICS alliance could gain control of the majority of the world's oil and gas trade by including Saudi Arabia and the United Arab Emirates, which could lead to a shift away from the USD and the de-dollarization of the oil economy.
The BRICS group is reportedly inviting Saudi Arabia and Egypt to join, with over 40 countries expressing interest and an expanded BRICS potentially accounting for 44% of the global economy by 2040.
Chinese President Xi Jinping has urged the BRICS bloc of emerging markets to expedite its plan to expand its membership, aiming to increase the group's influence on the global stage, with about 20 countries including Saudi Arabia, Indonesia, and Egypt expressing interest in joining the group.
The BRICS bloc of developing nations, including Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates, has agreed to expand in an effort to reshape the world order it sees as outdated and tilted against them. However, the expansion faces challenges due to differing interests and concerns among the member countries. Additionally, the idea of a BRICS trading currency called BRICKs is seen as flawed and unlikely to be successful. The notion that the GDP of the BRICS bloc will surpass that of the G7 countries is also disputed, with China's demographics and debt bubble being seen as potential obstacles.
The expansion of BRICS to include Iran, Saudi Arabia, Egypt, Ethiopia, Argentina, and the United Arab Emirates will make the bloc represent 46 percent of the world population and 37 percent of global GDP, but China's economic dominance within the group raises questions about whether it will truly be an "equal partnership."
The BRICS bloc, which has now expanded to include 11 countries, controls 30% of the global economy, 46% of the world's population, and a significant share of commodities such as manganese, graphite, nickel, and copper, as well as 42% of the global oil supply, potentially putting pressure on the US economy and challenging the traditional world order.
The BRICS bloc, consisting of Brazil, Russia, India, China, and South Africa, is set to expand with the addition of six more countries, but the selection process and consensus among members will be a challenge, particularly due to the strained relationship between China and India; however, BRICS continues to grow in importance as its members' share in the global economy rises, and it presents opportunities for trade and cooperation among emerging economies.
Oil prices ease in Asia as concerns over slow demand from China outweigh fears of tighter supply due to output cuts by Saudi Arabia and Russia.
The outlook for oil prices and Chinese demand, OPEC+ supply curbs, rising flows of Iranian crude, and the transition away from fossil fuels are among the key topics discussed at Asia's largest gathering of industry traders and executives.
Saudi Arabia is set to increase its crude supplies to China as new refining capacity lifts offtake, aiming to regain lost market share in the country. Meanwhile, China's huge zinc imports have revived hopes for economic growth in the second half of 2023.
The BRICS expansion, which includes countries like Saudi Arabia, the UAE, and Iran, has raised concerns in the U.S. and EU as it poses a threat to Western-dominated financial markets, while China's influence grows and the alliance aims for de-dollarization in global trade.
The BRICS group invited six new members, including Saudi Arabia and the United Arab Emirates, indicating a move towards energy dominance and diversification, but internal divides and strategic rivalries within the bloc may hinder its ability to challenge the current global energy order.
Saudi Arabia's Crown Prince Mohammed bin Salman's attendance at the recent G20 summit in India, along with its inclusion in the China-dominated BRICS coalition and signing of the ship-to-rail economic corridor supported by President Joe Biden, highlights the complex web of alliances and economic opportunities arising from the rivalry between the US and China. These developments show the various economies caught between the two powers seeking to build their own strategic alliances and spheres of influence.
