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Oil Prices: The move away from the dollar.

Oil Prices: The move away from the dollar.

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Old Sep 17th 2017, 2:40 pm
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Default Oil Prices: The move away from the dollar.

China has just launched a Yuan based oil futures. Iran and Venezuela are now pricing their oil in Yuan. Will the dollar survive is the US creates sanction against enough oil producing countries? The Yuan is the newest reserve currency, 2016.

China Readies Yuan-Priced Crude Oil Benchmark Backed By Gold | OilPrice.com
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Old Sep 17th 2017, 7:12 pm
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Default Re: Oil Prices: The move away from the dollar.

Originally Posted by mrken30 View Post
China has just launched a Yuan based oil futures. Iran and Venezuela are now pricing their oil in Yuan. Will the dollar survive is the US creates sanction against enough oil producing countries? The Yuan is the newest reserve currency, 2016.

China Readies Yuan-Priced Crude Oil Benchmark Backed By Gold | OilPrice.com
..Up to last November, I would have said 'only when pigs-fly' - mostly because if that starts a € oil futures market over it's 27 member states would be inevitable;- and that would expose just how close the US is to bankruptcy due to it's $19 trillion national debt, and over-printed currency. Reserve currency or not. Who holds 70% of the US's debt markers?...... the PRC
That's what I would have said....
Now we have #45 in charge. A possibility.
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Old Sep 17th 2017, 8:01 pm
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Default Re: Oil Prices: The move away from the dollar.

Originally Posted by 007Steve View Post
..Up to last November, I would have said 'only when pigs-fly' - mostly because if that starts a € oil futures market over it's 27 member states would be inevitable;- and that would expose just how close the US is to bankruptcy due to it's $19 trillion national debt, and over-printed currency. Reserve currency or not. Who holds 70% of the US's debt markers?...... the PRC
That's what I would have said....
Now we have #45 in charge. A possibility.
70%? The US is not worried about China owning $1t of debt.

The yuan is manipulated, it's not a free floating currency. Anyone pricing goods in it will regret it in the long term; in the short term it's more of a thumb of the nose at the US, hence the list of countries who did it.
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Old Sep 17th 2017, 10:01 pm
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Default Re: Oil Prices: The move away from the dollar.

Originally Posted by anotherlimey View Post
70%? The US is not worried about China owning $1t of debt.

The yuan is manipulated, it's not a free floating currency. Anyone pricing goods in it will regret it in the long term; in the short term it's more of a thumb of the nose at the US, hence the list of countries who did it.
That may be changing.

https://www.bloomberg.com/news/artic...trickier-stage

http://www.reuters.com/article/uk-ch...-idUSKCN1BF0EM

Last edited by mrken30; Sep 17th 2017 at 10:03 pm.
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Old Sep 18th 2017, 7:41 am
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Default Re: Oil Prices: The move away from the dollar.

Originally Posted by mrken30 View Post
China has just launched a Yuan based oil futures. Iran and Venezuela are now pricing their oil in Yuan. Will the dollar survive is the US creates sanction against enough oil producing countries? The Yuan is the newest reserve currency, 2016.

China Readies Yuan-Priced Crude Oil Benchmark Backed By Gold | OilPrice.com
This is old news.

China launched the Renimbi on Oct 1st 2016 and it took the world by storm It joined the worlds few elite reserve currencies and it was announced that China would only pay for its oil in the RMB from then on .
As the second largest economy in the world it still remains a mute point as to whether it is capable of ousting the dollar. These are just two of the currencies that make up the reserve group after all

As people like to be able to switch currencies in times of crisis I can't see it being particularly useful
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Old Sep 18th 2017, 10:35 am
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Default Re: Oil Prices: The move away from the dollar.

Bulls-eye anotherlimey; mrken30 & GeniB ...(bit outnumbered here) – you all make my point for me, and far better than I could.
The Yuan/Renimbi IS a manipulated, closed-off-from-free-markets currency;- but, imo, that manipulation will one day overwhelm the US at it's weakest point.
The PRC have steadily taken heavy leverages in everything from precious metals, through minerals, to land and particularly transportation developments via their sovereign wealth funds. The Venezuela initiative is a tri-fork move, comprising oil, technical aid, and social support (hearts & minds) to a basket case of a country. Once the global resources are in place the strike will be made against the US’s weakest point, its debt.
And you’re right the US doesn’t care, (it never has) if it’s 1trillion or any figure. They’ve based their policy on a business-as-usual assumption; - but they’ve forgotten the wild card - #45……….. As a child he blusters & throws stroppy tweets but when, and only when, the PRC are ready, will he fall for their strike.
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