TalkRadio3
Virgin
- Joined
- Jul 18, 2018
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- 1
Could this (or any similar events) provide a more constructive framework for discussing Trump's latest external policies vis a vis Russia, the Middle East and NATO?
Than the current GB flaming and trolling wars.
The petro-yuan could usher in a new era for global energy
“March 26, 2018 may go down in history as one of the most significant days in world finance. At 9am local time, the first trades in crude oil futures denominated in yuan – China’s currency – appeared on the screens of the Shanghai International Energy Exchange. Overall, 15.4 million barrels of crude oil changed hands through the new contract.
Dollar still king
The petro-yuan is the youngest sibling of the petrodollar. During the oil crisis of the early 1970s, Middle Eastern oil producers made an agreement with the US to use their proceeds from oil sales to purchase US Treasury bonds. This process, known as ‘petrodollar recycling’, has enabled a series of US administrations to finance growing deficit.
The end of the dollar’s dominance has been announced many times before.
China, the world’s second-largest oil consumer, stands a better chance of supporting its petro-currency.
A geopolitical pawn
The petro-yuan can also be seen as the latest move in a broader geopolitical tussle between the US and China’. For example, it fits into China’s One Belt, One Road initiative to develop ties across Central Asia. With gas and oil imports from Turkmenistan, Uzbekistan and Kazakhstan on the rise, China can use the petro-yuan to tie these countries to its macroeconomic cycle.
The new contract may also bring China closer to several US adversaries – including Russia, Iran and Venezuela – that are big oil producers and would be happy to ditch the dollar.
In the Middle East, the petro-yuan suits Saudi Arabia’s plans to diversify its investment portfolio overseas. As for the Asia-Pacific region, China’s own backyard, the rise of an Asian oil benchmark could mark the tipping point in an ongoing process of economic integration.”
https://www.worldfinance.com/markets/the-petro-yuan-could-usher-in-a-new-era-for-global-energy
Than the current GB flaming and trolling wars.
The petro-yuan could usher in a new era for global energy
“March 26, 2018 may go down in history as one of the most significant days in world finance. At 9am local time, the first trades in crude oil futures denominated in yuan – China’s currency – appeared on the screens of the Shanghai International Energy Exchange. Overall, 15.4 million barrels of crude oil changed hands through the new contract.
Dollar still king
The petro-yuan is the youngest sibling of the petrodollar. During the oil crisis of the early 1970s, Middle Eastern oil producers made an agreement with the US to use their proceeds from oil sales to purchase US Treasury bonds. This process, known as ‘petrodollar recycling’, has enabled a series of US administrations to finance growing deficit.
The end of the dollar’s dominance has been announced many times before.
China, the world’s second-largest oil consumer, stands a better chance of supporting its petro-currency.
A geopolitical pawn
The petro-yuan can also be seen as the latest move in a broader geopolitical tussle between the US and China’. For example, it fits into China’s One Belt, One Road initiative to develop ties across Central Asia. With gas and oil imports from Turkmenistan, Uzbekistan and Kazakhstan on the rise, China can use the petro-yuan to tie these countries to its macroeconomic cycle.
The new contract may also bring China closer to several US adversaries – including Russia, Iran and Venezuela – that are big oil producers and would be happy to ditch the dollar.
In the Middle East, the petro-yuan suits Saudi Arabia’s plans to diversify its investment portfolio overseas. As for the Asia-Pacific region, China’s own backyard, the rise of an Asian oil benchmark could mark the tipping point in an ongoing process of economic integration.”
https://www.worldfinance.com/markets/the-petro-yuan-could-usher-in-a-new-era-for-global-energy
