Chinese oil futures launch may threaten primacy of US dlr

Oil prices retreat from 2-month high as US-China trade dispute looms

The Shanghai International Energy Exchange, established and initiated by the Shanghai Futures Exchange and often referred to as the INE, allows Chinese buyers to lock in oil prices and pay using the local currency - yuan.

The Shanghai International Energy Exchange has allocated a total storage capacity of 5.95 million cubic meters (37.42 million barrels) at six sites along China's coast to receive crude under these contracts.

Citing Li Qiang, director of the research center under the Xinhu Futures, the media outlet suggested that the launch of China's own oil futures could be seen as Beijing's attempt to open the country's commodity market to foreign investors.

That may begin to change gradually going forward, as today saw the launch of Chinese crude oil futures out of Shanghai - Asia, despite being the world's biggest and fastest growing oil consumer, has so far not had a benchmark.

"Whether this will have any real bearing on the other crude benchmarks, I'm not quite sure, but traders love a new toy, so I applaud China for bringing in something that could stoke up some volatility", said Matt Stanley, a fuel broker with Freight Investor Services (FIS) in Dubai.

September contracts of the two major U.S. dollar-based oil benchmarks, Brent in London and West Texas Intermediate in NY, traded near US$68.29 and US$64 a barrel respectively.

"It's early days, and the speed at which China's futures market influences crude prices will depend on several factors", says Gupta. This did not stop global commodity trading giant Glencore from buying the Chinese futures on the first day of trading. About 19 foreign brokers had registered to trade the contracts as of last week, the exchange said.

Justin Thomas advances to Match Play semifinals
Instead, Kyle Stanley made an 8-foot birdie putt on the 18th hole to win, and then he beat Casey on the second hole of a playoff. That's how you do it in match play. "If I was sick or really sick, me trying to play this week wasn't going to do me any good".

Bank of England sets up its own fintech hub
The Bank noted the recent Brexit transition deal at the rates meeting, but gave no comment on its effect on the economic outlook. As such, the Reserve Bank of Australia (RBA) is now seen as unlikely to be considering near-term monetary policy adjustment.

Donald Trump welcomes Saudi Prince, says Saudi Arabia
Discussion focused on means of developing trade cooperation and technology development between Saudi Arabia and the United States. The two are similar in age - Kushner is 37, while MBS is 32 - and the Trump aide sees the prince as a key ally in curbing Iran.

For China's regulators, the hope is that the futures will serve as a risk management tool for its oil companies, act as a price reference for industry participants, as well as help open the country's financial markets.

Liquidity was driven by speculative retail and institutional investors, said Chen Tong, Shanghai-based senior crude analyst at First Futures.

"In the short-term, we believe price fluctuations will reflect domestic crude oil supply and demand".

Crude oil futures slipped on Monday, but losses were capped by a rebound in stock markets and escalating Saudi-Iran tensions.

The possibility of a full-blown trade war between the United States and China battered Asian shares on Monday.

The benchmark prices of 15 contracts were set at 416 yuan ($65.8), 388 yuan and 375 yuan per barrel, varied by delivery dates, and 20 minutes after the opening, 14,000 transactions had occurred. Chinese exchanges count each way of the trade - the buy and sell - as two lots.

Related:

  • Catalan ex-leader arrested in Germany on Spanish warrant

    Catalan ex-leader arrested in Germany on Spanish warrant

    Puigdemont had been visiting Finland since Thursday, but slipped out of the Nordic country before Finnish police could detain him. Puigdemont was stopped near the Danish border with Germany , a spokesperson of his party said on Sunday.
    Spending bill rejects Trump effort to gut water cleanups

    Spending bill rejects Trump effort to gut water cleanups

    Twenty-three Senate Republicans voted againstt it , while 39 Democrats voted for the measure that totaled more than 2,300 pages. Trump also complained the bill does not fully fund "the BORDER WALL, which is desperately needed for our National Defense".
    Pakistan expats celebrate National Day

    Pakistan expats celebrate National Day

    Hussain also greeted the forces from Turkey, Jordan and the United Arab Emirates that took part in the parade. The main feature of the day was the spectacular military parade held at the Parade Ground, Shakarparian.
  • Police release Austin bomber's 2nd roommate

    Police release Austin bomber's 2nd roommate

    Mary Conditt, 83, said she last saw her grandson in December when he traveled with his family to her house for Christmas. He spent two years there as a business administration major but did not secure a degree, according to the school.
    Initially Reported Missing, Iowa Family Found Dead In Mexico

    Initially Reported Missing, Iowa Family Found Dead In Mexico

    But the extended family waited until Thursday night to call authorities in case the Sharps had problems with their flight. Local reports in Mexico said investigators are trying to determine if food poisoning or a gas leak were responsible.

    China may hike tariffs on U.S. pork, aluminum, other goods

    As a result, foreign investment, particularly from China, has become increasingly critical to financing USA economic growth. Trump also asked the Treasury Department to impose restrictions on Chinese investment in American companies.
  • Who Poisoned Ex-Russian Spy Sergei Skripal? The Kremlin Has Many Theories

    Who Poisoned Ex-Russian Spy Sergei Skripal? The Kremlin Has Many Theories

    Sergei Skripal wrote to Vladimir Putin asking to be pardoned and to be able to visit his home country, a friend has revealed. Russian Federation responded by expelling its own diplomats and shutting down the British Council cultural organisation.
    Syria rebels prepare to quit penultimate pocket of Ghouta

    Syria rebels prepare to quit penultimate pocket of Ghouta

    The government's crushing offensive killed almost 1,500 people and wounded more than 5,000, according to opposition activists. The government assault triggered a mass movement of people trying to escape the violence in the Damascus suburbs.
    Winter Storm Watch to Go Into Effect Friday

    Winter Storm Watch to Go Into Effect Friday

    Forecasters said any shift in the storm's track will change snowfall amounts and the type of precipitation some areas receive. Various weather models overnight increased the potential for a significant winter storm across our area.
  • Black Panther is now the top-grossing superhero film of all time

    Black Panther is now the top-grossing superhero film of all time

    The film earned praise for its progressive values, mostly black cast, sympathetic portrayal of African cultures, and performances. By April, then, Black Panther will probably pass Spider-Man: Homecoming's Chinese box office gross of $116.2 million.
    First non-stop flight between United Kingdom  and Australia lands at Heathrow

    First non-stop flight between United Kingdom and Australia lands at Heathrow

    The historic Qantas flight QF9 is the first non-stop scheduled flight from Australia to Britain landed after 17 hours in London . The plane was fitted with special features to minimise discomfort during the journey including measures which minimised noise.
    March for Our Lives: The moments that made up a movement

    March for Our Lives: The moments that made up a movement

    She stayed silent on stage for six minutes and 20 seconds - the exact amount of time it took them to be killed. Aspen Stelly says she has personal experience with what she says are lax gun regulations not being enforced.

Comments

Latest news

Rain, mix, and snow ends tonight, but expect slick spots
If we do have a stormy day a week from this Thursday , that would potentially set up for a pleasant Easter Weekend.we'll see. Starting next week on Monday , the rain chances will remain at 20%, but then by Tuesday , the rain chances go up to 30%.

Toyworld Mag look at the Toys R Us situation
Outside of MGA, Larian and other investors launched a campaign on GoFundMe for the purchase of assets from the company. The Toys R Us troubles have hurt big toy makers like Mattel and Hasbro, which have been key suppliers to the chain.

Ronchi powers Islamabad United to Pakistan Super League trophy
The Pakistani diva herself Meera has shown inklings of her making an appearance at the PSL final! Mahira Khan , Pakistan's most loved actress is the true team ambassador of Peshawar Zalmi .

NaMo app does not seek blanket access to user's data
The app, the party claimed was one-of-its kind, which offers users a "guest mode" that does not require any permission or data. To this, the BJP countered the charge by saying that Gandhi and his party had zero knowledge of technology.

Three things to know about Loyola-Chicago, Michigan's next opponent
But regardless, it should be noted the Wolverines have done everything correctly this season - win or lose at the Final Four. The crowd included Rudy Tomjanovich, the MI alumnus and former Lakers coach, who watched in Wolverines gear near courtside.

Turkey, Free Syrian Army clear 4 more villages in Afrin
According to Syrian Observatory for Human Rights (SOHR), over 280 civilians have lost their lives since the beginning of the offensive.

Palestinian Teen Ahed Tamimi Sentenced To Eight Months In Prison
At least 32 Palestinians and four Israelis have been killed since US President Donald Trump announced embassy move to Jerusalem. She can be the megaphone of the hundreds of Palestinian children who remain locked up with little attention paid to them.

One dead in blast targeting security convoy in Egypt's Alexandria
It has also killed scores of members of Egypt's minority Coptic Christian community in church bombings and shootings. The Islamic State terror organization claimed responsibility for both attacks.

Nine Iranians indicted by USA for hacking to steal research data
Last week, Trump also forced out Rex Tillerson as his secretary of state, appointing CIA Director Mike Pompeo as his replacement. The suspects are affiliates of Mabna Institute , an organisation based in Tehran.

'Rajya Sabha defeat won't affect SP-BSP alliance in Uttar Pradesh': Mayawati
If I were in his place, I would have given first preference to ensure the win of the SP candidate and not of my candidate". We believe Narendra Modi and Amit Shah used the system to make their candidates win.

How to Celebrate Earth Hour in Monaco
Earth Hour is a movement organized by the World Wide Fund for Nature (called World Wildlife Fund in Canada). EARTH Hour is a worldwide movement led by WWF, taking up the fight against climate change.

Egypt court bans ride hailing apps, Uber and Careem
Uber has faced regulatory and legal setbacks around the world amid opposition from traditional taxi services. In October, Uber announced United States dollars 20 million of investment in its new support centre in Cairo.

Trump pauses looming metal tariffs for close United States allies
Trump points to America's trade deficit of about $375 billion as a sign that the trade relationship is unbalanced. According to a statement from the government, the tariffs would apply to about $3 billion of goods annually.

White House to Begin Investigation on President's Leaked Briefing Papers
At one point, Costa raised the subject of the nondisclosure agreements for employees of which the candidate was so fond. McMaster briefed the president by phone before the conversation while Trump was in the White House residence.

Ricciardo Handed 3-Place Penalty
A year ago, Ricciardo received a five-place grid penalty for an unscheduled gearbox change before retiring early. Everyone else wants to see them get challenged a bit more.

Other news