{"id":29389,"date":"2018-01-04T09:16:16","date_gmt":"2018-01-04T14:16:16","guid":{"rendered":"http:\/\/olduvai.ca\/?p=29389"},"modified":"2018-01-04T09:16:16","modified_gmt":"2018-01-04T14:16:16","slug":"petro-yuan-looms-how-china-will-shake-up-the-oil-futures-market","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=29389","title":{"rendered":"Petro-Yuan Looms – How China Will Shake Up The Oil Futures Market"},"content":{"rendered":"
\n

Petro-Yuan Looms – How China Will Shake Up The Oil Futures Market<\/a><\/span><\/h3>\n<\/div>\n
\n
\n
\n
\n

The “huge story”,<\/em><\/strong>as Graticule’s Adam Levinson called it,<\/a> will, it appears, be a “wake up call” for the West<\/strong> that seems to happily be ignoring this potential bombshell that is China’s looming launch of domestic oil futures trading.<\/strong><\/p>\n

Additionally, Levison warns Washington<\/a> that besides serving as a hedging tool for Chinese companies, the contract will aid a broader Chinese government agenda of increasing the use of the yuan in trade settlement… and thus the acceleration of de-dollarization and the rise of the Petro-Yuan.<\/strong><\/p>\n

\u201cI don\u2019t think there\u2019s any doubt we\u2019re going to see use of the renminbi in reserves go up substantially\u201d<\/em><\/strong><\/p><\/blockquote>\n

China has been planning this for a number of years<\/strong> and given rising tensions, now seems like a good time for China to flex a little.<\/p>\n

The Shanghai International Energy Exchange, a unit of Shanghai Futures Exchange, will be known by the acronym INE and will allow Chinese buyers to lock in oil prices and pay in local currency.<\/strong> Also, foreign traders will be allowed to invest — a first for China\u2019s commodities markets — because the exchange is registered in Shanghai\u2019s free trade zone. Even\u00a0 Bloomberg admits<\/a> there are implications for the U.S. dollar\u2019s well-established role as the global currency of the oil market, as Sungwoo Park sums up some of the key questions<\/strong><\/a>…<\/p>\n

1. When will trading begin?<\/strong><\/p>\n

According to the Shanghai-based news portal Jiemian, which cited an unidentified person from a futures company, trading is expected to start<\/a> Jan. 18. Multiple rounds of testing have been carried out and all listing requirements met. The State Council, China\u2019s cabinet, was said to have given its approval<\/a> in December, one of the final regulatory hurdles. The push for oil futures gained impetus in 2017 when China surpassed the U.S. as the world\u2019s biggest crude importer.<\/p>\n

\"1\"<\/a><\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Petro-Yuan Looms – How China Will Shake Up The Oil Futures Market The “huge story”,as Graticule’s Adam Levinson called it, will, it appears, be a “wake up call” for the West that seems to happily be ignoring this potential bombshell that is China’s looming launch of domestic oil futures trading. Additionally, Levison warns Washington that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3,5],"tags":[8924,17488,626,17559,4318],"class_list":["post-29389","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","category-geopolitics","tag-oil-futures","tag-petro-yuan","tag-petrodollar","tag-shanghai-international-energy-exchange","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29389"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29389\/revisions"}],"predecessor-version":[{"id":29390,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29389\/revisions\/29390"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}