BRICS: Towards full control of global oil production?

The 15th BRICS summit ended on Thursday, August 24, with some big news. That of the creation of BRICS+. An expanded version of the organization’s membership. Members that include some of the world’s biggest crude oil suppliers. Global geopolitics are potentially no longer the same.

BRICS PLUS, a strong strategic choice…

The BRICS summit came to a close yesterday. One of the crucial points of this year’s event was the accession of a number of countries. This strategic choice brings the number of members of the organization to 11, through the creation of what will henceforth be known as the BRICS +.

This terminology is perhaps no accident. Indeed, it has a certain analogy with OPEC+. This is the energy alliance comprising the members of the Organization of the Petroleum Exporting Countries (OPEC). Plus other major non-OPEC oil producers.

Like OPEC+, BRICS+ comprises the 5 traditional member countries, plus 7 new members. They are Ethiopia, Argentina, Saudi Arabia, Egypt, Iran and the United Arab Emirates (UAE).

Over forty countries have applied to join the BRICS. But for the time being, only these 7 countries have been accepted. Is this a risky choice? It would be naive to think so, given that these 7 new members have oil in common.

Indeed, Saudi Arabia, Egypt, Iran and the United Arab Emirates (UAE) are notoriously important oil-producing countries. Ethiopia and Argentina do not have the same status, but are home to substantial oil resources.

New composition of BRICS will control 80% of world oil production

With the addition of Saudi Arabia, the United Arab Emirates and Iran to the BRICS, the Union will be able to control the lion's share of the world's oil production.

The same goes for the sharp GDP growth of the… pic.twitter.com/gqVkGbZ7Ic

— Sprinter (@Sprinter99800) August 24, 2023

… Who will sign the death warrant for the BRICS petrodollar?

… Who will sign the death warrant for the BRICS petrodollar?

In light of these data, it seems that the projection of the end of the dollar is becoming clearer. This is factually verifiable. Indeed, a cross-analysis of Statista and Wordometer data reveals an interesting detail.

Thanks to their new members, the BRICS in their new guise will virtually control the bulk of the world’s crude oil production. In numerical terms, the BRICS+ will control at least 80% of global oil production.

This figure could rise to 95% if a country like Nigeria, Africa’s leading producer of black gold, joins the organization. This prospect is not yet on the agenda. Even so, it’s clear that the BRICS are striking a blow against the West.

Until now, the West, led by the United States, ensured its hegemony through the petrodollar system. A mechanism in which international oil transactions are mainly denominated and carried out in US dollars.

In other words, the US dollar is used as the reference currency for buying and selling oil on the world market. It is this system that ensures the dollar’s dominance, American geopolitical influence and economic power.

The development around the integration of oil-producing countries into the BRICS certainly signals the death of the American currency. American experts have every right to doubt this. But the exit from the dollar now seems inevitable. This is potentially good news for the crypto industry.