'PetroYuan' Futures Launch With A Bang, Volume Dominates Brent As Big Traders Step In

China's entry into the crude oil futures trading in their own currency has long been anticipated and finally arived last night.

As we detailed previously, China’s yuan-denominated crude oil futures launched overnight in Shanghai with 62,500 contracts traded in aggregate, meaning over 62 million barrels of oil changed hands for a notional volume around 27 billion yuan (over $4 billion).

Many sources predict that China's entry into this market and eventually all international trade using their currency will severely impact the US petrodollar standing as the dominate currency used in international trade and may eventually overtake the $ as the dominant world currency while others have doubts as to whether China can pull this off.

Many awaited the launch eagerly, seeking to tap China’s bustling commodity markets, although doubts remain whether the Shanghai futures contract will be able to become another international oil benchmark. These doubts center on the fact that China is not a market economy, and the government is quick to interfere in the workings of the local commodity markets on any suspicion of a bubble coming. To prevent such a bubble in oil, the authorities made sure the contract will trade within a set band of 5 percent on either side, with 10 percent on either side for the first trading day. Margin has been set at 7 percent. Storage costs for the crude are higher than the international average in hopes of discouraging speculators. As a result of these tight reins on the new market segment, some analysts believe international investors would be discouraged to tap the Shanghai oil futures.

If the first day of trading is any indication, however, this is not the case, at least not for large commodity trading firms. While it remains to be seen whether they’re in it for the long haul, the participation of Glencore, Trafigura and other foreign investors in the contract’s debut is a boon.

If China were not in this for the long haul I don't think they would have even attempted it to begin with.
If this fear actually does come to fruition I think it could actually be the final nail in the coffin for the US consumer based economy and the US only recourse in preventing China's becoming the dominant world currency could only be war to stop it. And to add insult to injury, Russia will most surely ally with China, especially since we have done everything we could have possibly done as of late to alienate Russia.

I don't see any stopping China and others agree with my opinion.

While it remains to be seen whether they’re in it for the long haul, the participation of Glencore, Trafigura and other foreign investors in the contract’s debut is a boon. On the other hand, China is not leaving everything to market forces. One energy consultant told Reuters that: “The government (in Beijing) seems determined to support it, and I hear a number of firms are being asked or pressured to trade on it, which could help.” PetroChina and Sinopec are seen as instrumental in providing long-term liquidity for the new market as well.

With all of the US debt held by China as an ace in the hole China may have us over the proverbial barrel.
And the article goes on.
What says ATS? Is this the beginning of the end of US foreign dominance? Maybe!

www.zerohedge.com...

I can't read your avatar stuff with it all the same color.

This whole depop things probably been in the works for a while.

Probably why we are flooding everywhere with immigrants.

a reply to: Mandroid7

Whats my avatar have to do with the post? Many members info can't be read if you take the time to notice. I will tell you I'm a citizen of the US and have been around here since 3/2014

a reply to: Mandroid7

That better?

This is the same website pushing that petro yuan doom pr0n.

Not buying it.

a reply to: CharlesT

It is against T&Cs to hide your details.

If you have been around for four years you should know this.

Now to the OP.

China always takes the long view and this has been brewing for quite some time.

China is the largest oil user on the planet and so this makes perfect sense for them.

This will end the US strangle hold on the world oil market once and for all. Russia would have liked to do it, but she is not economically big enough. However, Russia has taken a great deal of crap from the US and will no doubt will be in on the deal.

The US has only itself to blame.

P

P

a reply to: pheonix358

I agree! Now, other nations will have other resources to circumvent monetary sanctions placed on them by US foreign policy and can tell the US to go to He!!. The end of US hegemony could very well be in the early stages now.

a reply to: Mandroid7

Do you really think global financiers are not going to use this if that's where their profit is. They will ditch the $ in a New York second if there is money to be made there.

originally posted by: CharlesT
a reply to: pheonix358

I agree! Now, other nations will have other resources to circumvent monetary sanctions placed on them by US foreign policy and can tell the US to go to He!!. The end of US hegemony could very well be in the early stages now.

This is pathetic. You're actively praising the downfall of the very country you live in.

Smh, I won't entertain this thread where one says, America can go to hell. I get enough of that from Leftist who spout that all day.

🤨😐😑😶

a reply to: Arnie123

You sir are full of it. I am doing no such thing. I just see potentially great future hardship for us and am only stating what I see. You are pathetic in impugning my loyalty to my country and I resent it. I served my country loyally during the Viet Nam era and am proud of it. Take your insults somewhere else. They fall on def ears here.

I'm all for any international action that lowers the power of the American dollar.

Exchange rates are currently BS; less than 70 cents australian to US dollar.

Absolute claptrap.

Bring on a competitive China!

a reply to: CharlesT

Yeah, that's better, I can read who you are now.
Don't get offended so easy, I was just letting you know it was unreadable an hurt my eyes.

I am not that worried about it. Everything is more interconnected than that now, we do major business with China, we buy their garbage. They can't survive the US not buying their garbage, and we export a lot of stuff to them too.

There's too many connections both ways that would effect both parties negatively.

The big money guys are the ones who would have the most to lose and will stop it.

Who knows, we shall see.

a reply to: Mandroid7

I do hope you are right but only time will tell here. If we keep alienating powers around the globe the situation could get ugly really quick. Trump has started his trade war on China, Russia and others and it just might be the catalyst for the situation to get really nasty before it's over. I see the potential for greater than acceptable inflation, shortages of products and economic strife spilling into regional conflict if it all turns bad.

The financial powers engineer market corrections into the markets around every 10 or 12 years like clockwork and we are due for one now. If it does happen soon it could be worse than 2008.

Tomorrow the DOW will give us the real affect if its real. If Au and Ag spike, watch out!!

Good job imperialist dumbasses. You wagered our whole future on the hegemonic petrodollar concept (invented to continue the long-ago-failing military imperialism agenda), and now its fallen as you just had to keep squandering our nation in pursuits of maintaining dollar hegemony. Likewise, we've trolled China into becoming a wannabe imperialist power, we wont stop with their posturing now as "our" EXCUSE to maintain our BS posture, while nobody is willing to admit to their fault in this logic, in arguing to maintain it, and so on. Let alone try to dial it back before maybe just maybe we could lead the world to a 21 Century without a barbaric backwards global military empire (this stuff goes back to the beginning of recorded history meaning it s PRIMITIVE human affairs). It only costs US $10 TRILLION per decade, and millions slaughtered in our name to do it. AND FOR WHAT? TO fail in the end. Because fools cant quit voting Republican / Democrat the Two Party's that keep selling US out to China to be able to "afford" to keep marching to this drummer of death and destruction. The "Two" Party's that dont even represent liberals OR conservatives, let lone the rest of the 300++BILLION of US.

WAKE THE F UP.

originally posted by: Arnie123

originally posted by: CharlesT
a reply to: pheonix358

I agree! Now, other nations will have other resources to circumvent monetary sanctions placed on them by US foreign policy and can tell the US to go to He!!. The end of US hegemony could very well be in the early stages now.

This is pathetic. You're actively praising the downfall of the very country you live in.

Smh, I won't entertain this thread where one says, America can go to hell. I get enough of that from Leftist who spout that all day.

🤨😐😑😶

I can see where his wording would solicit a response along those lines.

Then again I see that kind of response all the time when people criticize US foreign policy. I've even seen it aplenty for merely criticizing Republican Party and the like.

This is for both of you:
US Foreign Policy is NOT "America". The Pentagon is NOT "America". The Two Party System is NOT "America". The MSM aka the Propaganda Industrial Complex is NOT "America". The CIA is NOT "America". The Federal Reserve is NOT "America".

If anything all of the above are anything but, except for in the minds of the brainwashed by all of the above.

WE are "America".

So if you want millions slaughtered annually in your name, spit it out dont be bashful.

And if you want the United States continuously sold out to foreign interests in your name, spit it out dont be bashful.

That should cover "both" sides.

This back and forth game you guys play at each other, as directed by the Two Party + MSM System and their BS tunnelvision, the diversion your collective uproar cause all of US is what ensures the perpetuation of both of those lines items. Keep it up, as usual, and the blood and the squander is on both sides hands. And we in the middle and the outer edges are effing sick and tired of this BS.

a reply to: IgnoranceIsntBlisss

This is the crux of the matter right here. Either you defend the petrodollar system and all of the war that comes with it or you support the end of it.

Humanity as a whole would be better off without it. The American people in the near term won't be.

It's a tough decision.

Edit: This is the fiery IIB that I love.

a reply to: PistolPete

Honestly. From Iraq to Libya and the current issues with Russia which is part of the BRICS with China the US foreign policy has always been highly in conflict with nations trying to sell oil in something other than the dollar.

When you stop paying attention to the binary right/left US political paradigm the quarrel is obvious.

originally posted by: IgnoranceIsntBlisss
Good job imperialist dumbasses. You wagered our whole future on the hegemonic petrodollar concept (invented to continue the long-ago-failing military imperialism agenda), and now its fallen as you just had to keep squandering our nation in pursuits of maintaining dollar hegemony. Likewise, we've trolled China into becoming a wannabe imperialist power, we wont stop with their posturing now as "our" EXCUSE to maintain our BS posture, while nobody is willing to admit to their fault in this logic, in arguing to maintain it, and so on. Let alone try to dial it back before maybe just maybe we could lead the world to a 21 Century without a barbaric backwards global military empire (this stuff goes back to the beginning of recorded history meaning it s PRIMITIVE human affairs). It only costs US $10 TRILLION per decade, and millions slaughtered in our name to do it. AND FOR WHAT? TO fail in the end. Because fools cant quit voting Republican / Democrat the Two Party's that keep selling US out to China to be able to "afford" to keep marching to this drummer of death and destruction. The "Two" Party's that dont even represent liberals OR conservatives, let lone the rest of the 300++BILLION of US.

WAKE THE F UP.

We all gonna die.

The upside to this could be that America will find new ways to drive the economy and finally kick the oil habit. We still have a free-market mentality and there are always people who will take a risk to start a new venture. I say its time to let China choke on oil while we come up with a clean alternative and sell that to the world. Log live the electro-dollar!