IN JUST 7 WEEKS, CHINA’S PETROYUAN HAS CAPTURED 12% OF THE WORLD’S MARKET (Podcast)
IN JUST 7 WEEKS, CHINA’S PETROYUAN HAS CAPTURED 12% OF THE WORLD’S MARKET Podcast – Jeff J Brown – China Rising
TDC Note – Does this mean that in fewer than 6 months we could see 30% of oil contracts shift to the new yuan settled oil contract? 7 weeks x 3 = 21 weeks / 12% x 3 = 36%, if we use a far more conservative number of 30% we are now in the realm of reality. Said another way just shy of 5 months. WOW!!! Let that sink in just a minute.
Amazing. On March 26th, only seven weeks ago, Baba Beijing (China’s leadership) launched its much anticipated petroyuan futures oil contract, which pointedly refuses to use the US dollar as a benchmark currency (http://chinarising.puntopress.com/2018/04/08/petro-yuan-is-the-newest-weapon-for-the-china-russia-iran-anti-usd-alliance-china-rising-radio-sinoland-180408/).
There was a huge question mark about how the global hydrocarbon trading system would take to the first serious competitor to the dollar dominated Brent and West Texas Intermediate contracts, which have been the industry standard going back decades.
I suspect even Baba Beijing can’t believe what has transpired over the last 50 days. China’s petroyuan has charged out of the gate and already has 12% of the world’s futures contracts. In only 50 days. Over one-tenth of the world market and growing fast (https://www.rt.com/business/426637-china-petroyuan-oil-trade-iran/). Let that timeline and the magnitude of the petroyuan’s rapid acceptance sink in for a moment. Historically and practically speaking, it’s beyond breathtaking.
Now, US President Donald Trump kept his campaign promise and pulled out of the big multilateral nuclear treaty with Iran, called the JCPOA (http://chinarising.puntopress.com/2017/09/24/baba-beijing-and-big-bear-smack-down-uncle-sam-in-iran-and-venezuela-china-rising-radio-sinoland-170924/). China already buys 25% of Iran’s exports. If Uncle Sam can bribe, extort, blackmail and assassinate its “allies” into stopping buying Iranian oil and gas, Iran has a huge incentive to start selling all its futures using the RMB denominated petroyuan. All purchases would be transacted by Iranian and Chinese banks, circumventing empire’s illegal sanctions. By not using the Western controlled Bank for International Settlements (http://chinarising.puntopress.com/2017/08/17/baba-beijing-is-going-to-start-using-blockchain-technology-for-official-business-china-rising-radio-sinoland-170817/), big bully super cop Uncle Sam could not even keep track of the flow of money being used between Iran and China.