China is Being Smart about the Oil Futures

[Marina Schwarz + 1,576]

China is approaching the launch of the yuan-priced oil futures cautiously, considering ways of limiting the space for price swings in advance. One of these ways is to set much higher storage costs, which would discourage speculators playing with the difference between futures and spot prices. Maybe this time we'll really see the yuan-priced oil futures?

[Rodent + 1,424]

2 hours ago, Marina Schwarz said:

China is approaching the launch of the yuan-priced oil futures cautiously, considering ways of limiting the space for price swings in advance. One of these ways is to set much higher storage costs, which would discourage speculators playing with the difference between futures and spot prices. Maybe this time we'll really see the yuan-priced oil futures?

This has been a long time coming. But nothing they do is going to stop price swings. 

[Marina Schwarz + 1,576]

Yeah, they're just trying to limit the scope of the swings, I gather. Painful memories. We'll see how it goes.