• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 53 mins Shale Oil Fiasco
  • 6 hours Everything you think you know about economics is WRONG!
  • 6 hours USA v China. Which is 'best'?
  • 19 hours Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 5 hours Global Debt Worries. How Will This End?
  • 14 hours My interview on PDVSA Petrocaribe and corruption
  • 4 hours Quotes from the Widowmaker
  • 1 day Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 3 hours Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 4 hours Tesla Launches Faster Third Generation Supercharger
  • 1 day Petroleum Industry Domain Names

Global Energy Advisory March 23rd 2018

Venezuela

China is preparing to challenge the reign of the U.S. dollar as the ultimate petrocurrency by launching much-delayed yuan-denominated oil futures next Monday. The contracts should start trading on the Shanghai International Energy Exchange on Monday, after several years of postponements.

China is being very careful with the futures, seeking to avoid excessive price volatility, which was what led to the end of the short life of Beijing’s first attempt at these contracts back in the 1993. Now, regulators have set strict trading bands of 5% on either side, except the first day of trading when the band will be 10% to allow for the initial excitement to drive more trade in the contracts.

Beijing has also considered discouraging speculators from flocking into the first Asian oil benchmark by setting storage capacity prices significantly higher than the international average. Still, not all analysts and industry observers are convinced the Chinese oil futures will become a success.

The main reason is that foreign investors are wary of trading in China although the country’s commodity markets are certainly attractive with bustling activity that makes ICE, for example, look slow. Yet this activity could also discourage traders who remember the 2008 stock market meltdown in China. Also, all these safeguards against excessive volatility could turn away some genuine traders seeking to tap China’s commodity markets.

The country’s regulators…




Oilprice - The No. 1 Source for Oil & Energy News