China's Yuan Oil Contracts: No Liquidity, but It Will be Built

It's definitely time to start seriously considering the impact of Chinese Yuan-denominated oil contracts. There's no real liquidity yet, but the Chinese are certainly working to build that up so suppliers can use them regularly against physical oil deliveries ... That's exactly what they're doing now. Between now and September, we should see a liquidity build-up because that's the date for the first delivery. 

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should we be skeptical? History shows that new contracts like this fail precisely because they can't get the liquidity going. Why is this one any different?

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I'm not that skeptical. The Chinese have been preparing this for years and I think they'll meet the liquidity goal because they're now the world's largest crude importer. That means there is a true commercial need for hedging. 

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Is there still a 5% band for the contract?

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that was only supposed to be until the first day of trading, which I believe was on the 25th, then it would supposed to be a 10% band ... 

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