Something being priced in dollars, doesn't mean it is bought with dollars.
Oil has been bought in every currency on the planet for a very long time.
The dollar clearing system is a transit route, not necessarily a destination. Buyers buys things with the currency they have, and sellers end up holding the currency they want to hold. Those involved in FX make a turn causing that match to happen. Otherwise the transaction never happens in the first place.
The expiration of the agreement merely means that Saudi now has the option to move its oil retained profits out of US Treasuries and into something else, which may very slightly affect the yield curve.
Oil has been bought in every currency on the planet for a very long time.
The dollar clearing system is a transit route, not necessarily a destination. Buyers buys things with the currency they have, and sellers end up holding the currency they want to hold. Those involved in FX make a turn causing that match to happen. Otherwise the transaction never happens in the first place.
The expiration of the agreement merely means that Saudi now has the option to move its oil retained profits out of US Treasuries and into something else, which may very slightly affect the yield curve.