BRICS To Command More Than 40% of Global Crude Oil Output

A think tank based in Washington has expressed concerns that the expansion of BRICS, a group of countries with control over a large portion of global crude oil output, could be a warning to the United States. Check out more details about the matter.

In a recent blog post, Jonathan Panikoff of the Atlantic Council stated that the addition of new nations to the economic bloc is indicative of changing geopolitical circumstances.

Panikoff suggests that the US should maintain closer ties with its allies in light of the emergence of a multipolar world order.

“In the view of the BRICS states, including the newly invited members, reducing global US economic and financial leverage would create a more level playing field, while countries such as Iran would view it as a way to further reduce the impact of sanctions.

For Washington, it should be a warning: the need to strengthen and renew relationships with allies has never been more important. The emerging world might be multipolar, but some poles will be closer than others.”

According to Reuters, BRICS has given the green light for the inclusion of Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates.

Many nations are also interested in joining this economic coalition. With these six new members, BRICS is expected to control more than 40% of the world’s crude oil production.

BRICS is a union of nations that share economic interests, consisting of Brazil, Russia, India, China, and South Africa. The increase in BRICS membership will happen on January 2024, doubling the number of members.

Reports have surfaced that India, a member of the BRICS alliance, has made its inaugural purchase of oil from the United Arab Emirates using its own national currency.

The announcement was made in July after India and the UAE reached an agreement to allow the use of rupees instead of US dollars in their trading relationship.

In recent times, the two nations have commenced trading in their respective currencies, with Indian Oil allegedly making payments in rupees to acquire one million barrels of oil from the state-owned Abu Dhabi National Oil Company. It’s important to note that other BRICS nations have also bought energy from the UAE without relying on the US dollar.