RIYADH (TSAT) The US media has claimed that China and Saudi Arabia are discussing ending the dominance of the US dollar in the world market and Riyadh accept Yuan instead of dollars for oil sale to Beijing.

If the agreement was finalized it would hit the US dollar and Washington could lose its influence in the world.

Currently, under the petrodollar system, oil is exchanged for dollars between countries that buy oil and those that produce it.

Beijing and Riyadh have been in discussions on and off for several years about yuan-priced oil contracts, talks have accelerated recently due to U.S. security policies under President Joe Biden, The Wall Street Journal reported quoted official familiar with ongoing discussion.

Last week, the US media reported that Saudi and UAE crown princes declined President Joe Biden's telephone calls who wanted to speak with gulf countries leaders after oil prices hike across the world following Russia's attack on Ukraine. 

Riyadh is not happy over Biden policies who reduced his contacts with Gulf countries and also adopted a soft policy over the nuclear deal with Iran. Which Saudi and its allies consider a major threat for them. 

"I don’t know which word to use, whether incompetence, carelessness, bad management — it was all a combination of those things,” the daily quoted Saudi Prince Turki Al-Faisal told CNBC last year.

Riyadh currently exports 6.2 million barrels of oil per day in US dollars.

"The dynamics have dramatically changed. The U.S. relationship with the Saudis has changed, China is the world’s biggest crude importer and they are offering many lucrative incentives to the kingdom," the daily quoted a Saudi official said.

Last week, the Russian media also reported that Moscow would pay the debt to western countries in ruble and also considering to sale of its oil and gas in its own currency instead of accepting dollars. 

The analysts believed that the Ukraine war could change the global environment for the US after western countries imposed economic sanctions against Russia including using the dollar as a weapon that created fear among the other major countries. 

Saudi Arab has also apparently changed its policy and went close to Beijing to get rid of Washington's influence as in January this year the Saudi Crown Prince Muhammad bin Salman participated in the opening ceremony of the Beijing Winter Olympics despite the US and its allies’ boycott.