The discussions, reported by Reuters, suggest that Riyadh is preparing a strategy to deal with potential passage of the No Oil Producing and Exporting Cartels Act, known as NOPEC. The legislation is widely viewed as a longshot, which means the Saudi move to marginalize the dollar is unlikely to come to pass.
Still, the kingdom has discussed the proposal with other OPEC members, two sources told Reuters. Another source said Riyadh has broached the subject with U.S. energy officials.
If the Saudis followed through, it would chip away at U.S. influence over global financial markets and Washington's ability to enforce sanctions on foreign entities. Efforts to diminish the greenback's role in oil trading have been fairly limited to date, but the Saudi plan would lend significant momentum to those efforts — and represent a coup for countries like Russia and China.