The world’s top oil importer, China, is preparing to launch a crude oil futures contract denominated in Chinese yuan and convertible into gold, potentially creating the most important Asian oil benchmark and allowing oil exporters to bypass U.S.-dollar denominated benchmarks by trading in yuan, Nikkei Asian Review reports.
The crude oil futures will be the first commodity contract in China open to foreign investment funds, trading houses, and oil firms. The circumvention of U.S. dollar trade could allow oil exporters such as Russia and Iran, for example, to bypass U.S. sanctions by trading in yuan, according to Nikkei Asian Review. To make the yuan-denominated contract more attractive, China plans the yuan to be fully convertible in gold on the Shanghai and Hong Kong exchanges....OilPrice.com
China Readies Yuan-Priced Crude Oil Benchmark Backed By Gold
Tsvetana Paraskova
Apparently confirming what President Maduro had warned following the recent US sanctions, The Wall Street Journal reports thatVenezuela has officially stopped accepting US Dollars as payment for its crude oil exports....
Zero Hedge
De-Dollarization Spikes - Venezuela Stops Accepting Dollars For Oil Payments
Tyler Durden
6 comments:
Tom isn't listed on the Modern Money Conference presenter or moderator list which is weird because his familiarity with broad topic and literature is unparalleled. None of the narrow academic experts compare. Interestingly Boesler is going to be there, that guy's twitter is a goldmine of raw trading ideas.
I would be unable to accept for personal/family reasons even if invited. Traveling is not convenient now.
I always find these pieces amusing. As though they don't already trade without going through dollars.
Just because something is priced in dollars as a convenience doesn't mean that is the currency of exchange or the contract. And ultimately everybody gets the currency they want anyway otherwise there would be no deal.
Neil, true enough but I predict this is going to change the US reserve status over the next decade. Obama had no idea of the consequence of imposing sanctions on Russia. China's gold schtick is going to entice a lot of sellers. Russia is opening a gold mine in eastern Russia with an expected 13 tons/annum. Things are changing. I've seen it coming for three years. Some Chinese officials must have listened intently when Warren and Jan went to China in 1995.
Might be a cold winter in New England if we can't pay for their heavy crude used for heating oil up there...
Should have already been 10 years past any use of heating oil in the US as a goal after 9/11/01....
Why wouldn't we be able to "pay for their heavy crude used for heating oil up there...?" makes no sense. Fercrissake, every big American oil company is in Alberta Canada taking out the oil. Alberta has supplied 20-22% of US oil for decades.
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