India, China & Russia to ramp up energy trade in local currencies if US dollar becomes less stable: OIES

Emphasising the impact on energy markets due to the US flexing its Dollar dominance, the Oxford Institute for Energy Studies (OIES) in a recent paper projected that countries such as India, China and Russia will increasingly do business leveraging local currencies if the Greenback becomes less stable.

The OIES, in a paper on the geopolitics of natural gas argued that the Donald Trump administration’s politicisation of energy is likely to cap market growth, as strategic buyers seek to diminish energy import reliance while instead developing home-grown, decarbonised alternatives.

The paper pointed out that through its dominance of dollar-clearing finance, the US has extraordinary power to influence global market conditions through the imposition or lifting of unilateral sanctions on consum