Qatar says countries are looking for new ways to price oil due to the Ukraine-Russia crisis.

• Some countries are considering a "parallel system" of oil pricing, as the economic effects of the Ukraine crisis have become apparent.
• According to a Wall Street Journal report, Saudi Arabia is in expedited negotiations with China to use yuan instead of dollars for the oil that Beijing purchases.
• Qatar is increasing its gas supplies by engaging in discussions with European nations, as stated by Mohammed bin Abdulrahman Al-Thani.

The foreign minister of Qatar has stated that the conflict in Ukraine and its geopolitical consequences are prompting certain countries to consider alternative methods of valuing oil, rather than using the dollar.

According to a Wall Street Journal report, Saudi Arabia is in accelerated talks with China to accept yuan instead of dollars for oil that Beijing buys.

At the Doha Forum, Al-Thani stated that he did not anticipate the implementation of such a system in the near future, but emphasized that the economic impact of the Ukraine war was significantly affecting some countries.

"Looking around, I'm sure many countries are unhappy with the Ukrainian-Russian crisis, particularly the economic consequences," he stated.

"As we transition politically, we must also consider the economic implications of our actions. This includes exploring alternative pricing systems and hedging our bets to ensure economic stability."

The U.S.' economic sanctions could cause countries to shift away from using the dollar as the currency for oil pricing, according to Gal Luft, co-director of the Institute for the Analysis of Global Security.

Russia's central bank reserves are effectively frozen and the country is disconnected from the interbank messaging system, SWIFT, due to the sanctions.

"On one hand, you are imposing restrictions and penalties. On the other hand, you are seeking financial support from other countries through the purchase of your Treasury bonds and the financing of your debt. This is not a sustainable situation," Luft stated.

Oil diversification

Al-Thani of Qatar stated that the country was increasing its efforts and engaging in discussions with European nations regarding enhancing gas deliveries.

He stated that although the majority of its gas contracts are long-term and cannot be altered, the company is still assisting some European partners facing gas shortages with the limited resources available.

European countries are looking to reduce their dependence on Russian gas as their energy source. Last year, the EU obtained 45% of its gas from Russia, as stated by the International Energy Agency.

The U.S. announced plans to collaborate with partners, including Qatar, to supply at least 15 billion cubic meters of liquified natural gas to Europe this year, with the amount expected to rise in the future.

However Al-Thani said that no one energy supplier can substitute another.

"He stated that diversifying the source of supply is the best way forward. "This is the only way forward. We are currently in discussions with several European countries about new long-term contracts, which are ongoing.""