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..
Everytime a country challenges the #Petrodollar scheme the US regime attacks, I suspect the China #Petroyuan launch will be no different, North Korea will be the pretext for the US to nuke Asia again https://t.co/OxDBSL6l8U @JamesGRickards @LukeGromen
— FrankfurtFinanz (@JppMorgann) February 9, 2018
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.
Crude oil imports to China hit another record in Jan 2018 reaching 9.57MBPD whereas Natural gas imports also rose to hit 7.7MT (2nd highest monthly import) led by independent refineries taking advantage of quotas granted in Dec 17 by Govt @BloombergAsia @CNBCnow @ETEnergyWorld pic.twitter.com/aHVZVuoXWU
— Toshniwal Equity (@ToshniwalEquity) February 9, 2018
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