China Formally Announces Launch of Yuan Oil Futures Contract

China Formally Announces Launch of Yuan Oil Futures Contract by Rory – The Daily Coin

After months of speculation and much hand wringing in the alternative press China has formally announced she will launch the yuan oil futures contract on March 26, 2018. The only question that remains, will this new contract actually hit on March 26? We will find out on March 27!

We haven’t heard any mention of gold, gold contracts or gold tied to oil; it could still happen, it’s just not part of this announcement.

After a wait of about a quarter of a century, the world’s biggest oil buyer is finally getting its own crude-futures contract.

In a challenge to the world’s dollar-denominated oil benchmarks Brent and West Texas Intermediate, China will list local-currency crude futures in Shanghai on March 26, according to the nation’s securities regulator. The start of trading, open to foreigners, will mark the end of years of delays and setbacks since China’s first attempt at a domestic contract in 1993.

If the futures are embraced by overseas investors and become a benchmark for global oil transactions, China’s hoping the yuan could challenge the dominance of the greenback in international trade. Still, skeptics say that won’t happen as long as the currency is controlled by the central government, and while international traders may agree to settle contracts converted into yuan, they’ll continue to price the oil in dollars.Source

This will not kill the Federal Reserve Note, U.S. dollar, but it certainly won’t do it any favors. With Venezuela, as little faith as anyone has in this experiment working, launching the Petro, backed with oil, gold and diamonds, China’s formal announcement makes the second nation to officially move away from the petrodollar.

As we have reported for many years, Russia and China continually strengthen their economic ties and this formal announcement should sure-up even more ties as Russia is one of the largest oil exporters in the world, with China being their largest customer.

With China’s insatiable appetite for commodities and the U.S. obsessed with rigging markets will the CME Group or the Plunge Protection Team be able to manipulate the oil market to favor the West? It seems if the West manipulates the price of oil down to hurt Russia and China this would play into their hands. If the price is manipulated higher this would hurt the supposed “growing economy” in the U.S..

For those that believe the oil market is not rigged simply look at the recent LIBOR, FOREX and precious metals market rigging cases that have all ended poorly for the market riggers. If these markets are rigged, the oil market is rigged as well – it must be in order to keep these other vital markets telling the story that needs to be told.

This new contract shouldn’t impact the Federal Reserve Note, petrodollar, too much to begin with, but over the next few years the damage will become apparent and inflation in the U.S. should rise accordingly. It’s funny this is being formally announced during one of the worst corrections to the U.S. stock markets in years. There are no coincidences.

hattip / wawalleye

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The Daily Coin

Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.