{"id":32786,"date":"2018-03-26T06:10:59","date_gmt":"2018-03-26T11:10:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=32786"},"modified":"2018-03-26T06:11:10","modified_gmt":"2018-03-26T11:11:10","slug":"petroyuan-futures-open-over-10-billion-notional-trades-in-first-hour","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=32786","title":{"rendered":"PetroYuan Futures Open – Over 10 BillIon Notional Trades In First Hour"},"content":{"rendered":"
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PetroYuan Futures Open – Over 10 BillIon Notional Trades In First Hour<\/a><\/span><\/h3>\n<\/div>\n
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After all the preparation, all the expectation, cheerleading and doomsaying, China’s Yuan-denominated crude oil futures contract began trading tonight and appears to be off a good start with well over 10 billion yuan notional traded within the first hour<\/strong>.<\/p>\n

So far it has tracked WTI futures well, trading at around a $2 premium to WTI (when translated from yuan to USD)…<\/p>\n

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Additionally, well over 23,000 contracts have traded within the first hour for a notional trading volume of over 10 billion yuan<\/strong> – more than $1.5 billion notional… signaling significant demand.<\/p>\n

Offshore Yuan is moving in sync with ‘Petroyuan’ futures – as WTI tends to track the USD.<\/p>\n

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As we most recently noted,<\/em><\/a> after numerous “false starts” over the last decade, \u00a0the \u201cpetroyuan\u201d is now real and China will set out to\u00a0challenge the \u201cpetrodollar\u201d<\/a>\u00a0for dominance. <\/strong>Adam Levinson,\u00a0managing partner and chief investment officer at hedge fund manager Graticule Asset Management Asia (GAMA), already\u00a0warned last year<\/a>\u00a0that China launching a yuan-denominated oil futures contract will shock those investors who have not been paying attention.<\/p>\n

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This could be a death blow for an already\u00a0weakening<\/a>\u00a0U.S. dollar, and the\u00a0rise of the yuan<\/a>\u00a0as the dominant world currency.<\/strong><\/p>\n

But this isn\u2019t just some slow, news day \u201cfad\u201d that will fizzle in a few days.<\/p>\n

A Warning for Investors Since 2015<\/strong><\/u><\/p>\n

Back in 2015, the first of a number of strikes against the petrodollar was dealt by China. Gazprom Neft, the third-largest oil producer in Russia, decided to\u00a0move away<\/a>\u00a0from the dollar <\/strong>and towards the yuan and other Asian\u00a0currencies<\/a>.<\/p>\n

Iran followed suit the same year,<\/strong> using the yuan with a host of other foreign currencies in trade, including\u00a0Iranian oil<\/a>.<\/p>\n

During the same year China also developed its\u00a0Silk Road<\/a>, while the yuan was beginning to establish more dominance in the European markets.<\/p>\n

But the U.S. petrodollar still had a fighting chance in 2015 because China\u2019s oil imports were all over the place. Back then,\u00a0Nick Cunningham of\u00a0OilPrice.com<\/a>\u00a0wrote<\/a>\u2026<\/p>\n

Despite accounting for much of the world\u2019s growth in demand in the 21st Century, China\u2019s oil imports have been all over the map in recent months. In April, China imported 7.4 million barrels per day, a record high and enough to make it the world\u2019s largest oil importer. But a month later, imports plummeted to just 5.5 million barrels per day.<\/strong><\/em><\/p>\n

That problem has since gone away, signaling China\u2019s rise to oil dominance\u2026<\/p>\n

The Slippery Slope to the Petroyuan Begins Here<\/strong><\/u><\/p>\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":"

PetroYuan Futures Open – Over 10 BillIon Notional Trades In First Hour After all the preparation, all the expectation, cheerleading and doomsaying, China’s Yuan-denominated crude oil futures contract began trading tonight and appears to be off a good start with well over 10 billion yuan notional traded within the first hour. So far it has […]<\/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":[2,5],"tags":[130,588,626,6466,2632,827,839,1031,4318],"class_list":["post-32786","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-china","tag-oil","tag-petrodollar","tag-petroyuan","tag-silk-road","tag-united-states","tag-us-dollar","tag-yuan","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32786","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=32786"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32786\/revisions"}],"predecessor-version":[{"id":32787,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32786\/revisions\/32787"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}