Moneymoney

Tue May 15, 2018, 09:10 PM

Chinas petro-yuan thundering into action as Iran ditches US dollar in oil trade


Published time: 14 May, 2018 11:14

Washington’s renewed sanctions on Tehran supports China’s newly established oil futures, analysts say. The sanctions can make the yuan a more preferable currency than the dollar on the oil market.

Since their launch in May, the interest in the renminbi-backed oil contracts has steadily surged. Traded daily volumes hit a record 250,000 lots last Wednesday, and the share of yuan contracts in global trading jumped to 12 percent compared to eight percent in March.

“The contract is thundering into action,” said Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA in Singapore, as quoted by Reuters. “It makes sense for Iran to begin selling oil under contracts denominated in yuan rather than dollars.”

China is the largest oil consumer in the world and also buys the most from Iran, a major OPEC producer. Beijing buys 25 percent of Iranian oil exports, which accounts for eight percent of its needs.

“The sanctions... can potentially accelerate this process of establishing a 3rd (oil) benchmark,” said senior vice president for derivatives in Singapore at financial services firm INTL FCStone, Barry White.

More...

https://www.rt.com/business/426637-china-petroyuan-oil-trade-iran/

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Reply Chinas petro-yuan thundering into action as Iran ditches US dollar in oil trade (Original post)
RCW2014 May 2018 OP
Red Bull May 2018 #1
RCW2014 May 2018 #2
quad489 May 2018 #3

Response to RCW2014 (Original post)

Tue May 15, 2018, 09:14 PM

1. I do not think

Iran will be around in the long term

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Response to Red Bull (Reply #1)

Tue May 15, 2018, 09:20 PM

2. Just like Iraq, eh? How's that working out for the neocons? lol@neocons nt


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Response to RCW2014 (Original post)

Tue May 15, 2018, 11:05 PM

3. Good...like the chinese govt manipulated yuan be the used currency...

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