Posted on 03/26/2018 8:55:51 AM PDT by Enlightened1
The highly anticipated yuan-backed crude oil futures have been launched in Shanghai. China is the world’s biggest oil consumer, with eyes on rival benchmarks Brent and WTI as well as the US currency.
Trading of the new oil futures contracts for September settlement started on the Shanghai International Energy Exchange at 440.20 yuan ($69.70) per barrel, reports Chinese daily the South China Morning Post. Some 18,540 lots have reportedly been sold and purchased so far.
long-awaited step evoked a surge in global prices for oil with Brent Crude soaring to $71 a barrel for the first time since 2015. US crude benchmark West Texas Intermediate (WTI) reached the highest level in three years at $66.55 per barrel, before retreating to $65.53.
Experts see China’s yuan-dominated contracts as historic as the new futures symbolize the first time that foreign investors can access a Chinese commodity market. The launch ends years of setbacks and delays since the country’s first attempt at listing the securities in 1993.
At the same time, the petro-yuan launch is seen as a blow to the US dollar that has been weakening in recent months. The US dollar is the predominant settlement currency for oil futures contracts. On Monday, the greenback slipped to a 16-month low against the Japanese yen, but remained steady against a basket of six major currencies.
Chinese authorities have reportedly accelerated the launch amid growing crude imports. Last year, the country outpaced the US as the world’s number one importer of oil. Thus, the contracts may not only help to win some control over pricing from the major international benchmarks, but also promote the use of Chinese currency in global trade.
(Excerpt) Read more at rt.com ...
Well, now that we are an exporter of the precious liquid, I’m a lot less concerned about this.
Hey, how’s bitcoin doing these days? :)
Ah. Russia Today.
If I had a petro-yuan (or bitcoin) for every article that heralded the death of the US Dollar . . . . .
Where is Houston?
What does Halliburton have to say about this...lol
Who developed the oil industry????
LOL!!
This isn’t the 70s.
A lot of moves China will likely make will be designated as merely reactions to Trump, but what people need to realize is that China has full intentions to be world dominant. Whatever moves they’re making now are moves they would have made anyway.
How stupid. There will be no death of the dollar. When a leftist makes a prediction, it’s just wishful thinking.
The petro-yuan will be gold back and the dollar is not.
I am hoping the Trump Administration will push to get us back on to the Gold Standard.
If we do not, then the U.S. Petro Dollar over time will be at risk of no longer being the world’s reserve currency.
Exactly! Big joke if you ask me. AFAIK, China hasn’t even been able to keep any kind of future’s market going in even one commodity, for any length of time. Can’t imagine why China thinks foreign traders would put up with their arbitrary, heavy-handed crap for even a second. And Chinese gamblers... I mean traders... will make the market so volatile Westerners just won’t go anywhere near it. imo
In the absence of that move, this whole thing is really just semantics.
If I stop selling my products for dollars and only accept $1.49 candy bars as payment, I'm still trading in dollars.
The dollar losing its reserve status would be a good thing for the US Republic.
Our ability to create massive debt, and print money in a totally fiat, manipulated currency has supported the massive progressive nanny state. Politicians, particularly leftist ones, are always able to find money for their schemes. We proved it again just last week.
Ahh yes, the vaunted chinese oir dorrar
Gonna let the Chi-Com money float against all other currencies? or just teh new Yuan Petro dollar? No more currency “’nipulation’”?
You’re gonna hear the sound of a billion voices screaming “Holy Shiite!” all at at once.
Trading oil for gold is groovy.
We gots lots o oil, gibs me dat golt!
that's where they're going with this. all fiat currency not backed by a tangible commodity with value - such as oil, gold, silver, etc - all eventually become worthless. everyone, throughout history. The Chinese have been buying gold for years. the US probably doesn't have anywhere near the tonnage claimed. the dollar is doomed.
Until China lifts capital and financial controls the only reason to do a contract in Yuans is if the money is immediately being used to but stuff from China.
Gold or Gold plated Tungsten?
There isn’t enough gold in the world to back China’s currency the way you describe — especially the currency of CHINA.
Sorry — that last post wasn’t complete ... “especially the currency of CHINA and its 1.5 BILLION PEOPLE.
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