PetroYuan - China's Oil Futures are Gaining Momentum

Ok, this is just plain weird.  I'm sharing an Oil Price article here on the Oil Price community forum.  I'm a long time reader of Nick Cunningham.

Anyway, after the Oilpro forum closed down, I've been posting on a few different oil & gas forums, but mostly on LinkedIn (which isn't exactly a proper forum.)  

Over on LinkedIn I've been commenting ad nauseum since last year about the rise of the PetroYuan, and its potential impact against the PetroDollar monopoly.

Monopolies suck.  Choice is a better option.

While I don't want the PetroDollar to go away, I do want there to be a valid commercial choice between the PetroDollar and the PetroYuan.

China's rollout of the PetroYuan is almost a decade in the making.  Its recent launch will likely be an incremental, careful, slow - moving tsunami against the previously invulnerable PetroDollar stranglehold.

Nick Cunningham has a good overview of the PetroYuan in his article, and I generally tend to agree on many of the items he discusses about the PetroYuan.

Give it a read:

https://oilprice.com/Energy/Energy-General/Chinas-Oil-Futures-Are-Gaining-Momentum.html

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My discussion last year with Ryan Ray over in Texas, about the PetroYuan (which had not yet been launched).

https://globalenergyleaders.podbean.com/e/episode-91-tom-kirkman-on-the-petrodollar/

Episode 91 -Tom Kirkman on the Petrodollar

Sep 28th, 2017 by globalenergyleaders

On today’s episode, Ryan Ray visits with Tom Kirkman as he returns to The Global Energy Leaders Podcast from Malaysia to discuss the Petrodollar.

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Hey Tom, thanks for bringing this up. It's probably one of the most important topics to have on this forum. There have been a couple short threads on this, but no one's got a tight grasp on this. I'm personally watching the liquidity since they opened trading on Yuan oil contracts. And some big dogs have already bitten. I definitely think this is going somewhere. I know historically attempts have failed, but the Chinese have been planning this painstakingly. There's nothing haphazard about it, and the timing is right, I think. 

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Saw this article today in Forbes ... calling petro dollar and petro yuan a 'myth' and a 'fantasy'. 

https://www.forbes.com/sites/douglasbulloch/2018/04/26/the-petro-dollar-is-a-myth-the-petro-yuan-mere-fantasy/#4b4b2bea6a14

I think it's anything but; however, thought the article might spark some interesting debate. It's the same logic with cryptocurrency--it doesn't exist if you can't touch it, but the market clearly says differently. 

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1 hour ago, TraderTate said:

Hey Tom, thanks for bringing this up. It's probably one of the most important topics to have on this forum. There have been a couple short threads on this, but no one's got a tight grasp on this. I'm personally watching the liquidity since they opened trading on Yuan oil contracts. And some big dogs have already bitten. I definitely think this is going somewhere. I know historically attempts have failed, but the Chinese have been planning this painstakingly. There's nothing haphazard about it, and the timing is right, I think. 

Thanks TraderTate; I would upvote your comment, but it seems I've maxed out my daily limit (? !) of reactions on the forum today.

For half a year, I've been commenting endlessly about the potential impact of the PetroYuan, mostly over on LinkedIn, which can be a fairly frustrating place to post comments - LinkedIn is not a proper forum for dedicated discussions, it's more like Facebook for job hunters : /

Western Mainstream Media has been mostly ignoring the potential significance of the PetroYuan's shot across the bow to the previously invunerable U.S. PetroDollar monopoly.  The U.S. government has succeeded in the past to violently quash any attempts to replace the PetroDollar (Lybia, for example).  But China is too big of a global player to be quashed.

A few media outlets have been paying attention to the PetroYuan.  The Tylers over on Zero Hedge have a darn good grasp of the significance of the PetroYuan.  (Tyler Durden on Zero Hedge is the pen name of a couple of very intelligent and humerous Russian financial wags, who like to troll U.S. MSM.)

Nick Cunningham on Oil Price has covered the PetroYuan on occasion, and he is far more conservative about the PetroYuan than the humerously trolling articles by The Tylers on ZH.

Some Western Mainstream Media have finally pulled their heads out of the sand to look around a bit at the PetroYuan.

My view is the Chinese government has been planning the PetroYuan for almost a decade. It's a juggernuat already set in motion.

The PetroYuan is promised to be fully convertible to physical gold on the Hong Kong and Dubai exchanges.

The U.S. Dollar is not backed by gold (or backed by anything, except for trust) since it is a fiat currency.

Besides China wanting the PetroYuan to succeed as a counterbalance to the PetroDollar monopoly, Russia, Iran and Venezuela are actively dumping US Dollars, and are willing to trade oil in Yuan.

Saudi Arabia will be a deciding factor.

My image of the PetroYuan's global impact is an incremental, slow moving, tsunami.  Ignore the PetroYuan at your own peril.

 

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2 hours ago, Kate Turlington said:

Saw this article today in Forbes ... calling petro dollar and petro yuan a 'myth' and a 'fantasy'. 

https://www.forbes.com/sites/douglasbulloch/2018/04/26/the-petro-dollar-is-a-myth-the-petro-yuan-mere-fantasy/#4b4b2bea6a14

I think it's anything but; however, thought the article might spark some interesting debate. It's the same logic with cryptocurrency--it doesn't exist if you can't touch it, but the market clearly says differently. 

< rolling my eyes >

I could go on and on about the PetroYuan.  Actually, I have already.

Try doing a Google search... copy & paste this exact phrase into Google, including the quotation marks:

"tom kirkman" petroyuan

I also have dozens and dozens of comments and posts on LinkedIn about the PetroYuan, but Google generally doesn't capture LinkedIn content.

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and this also should be good for gold...

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It's only a matter of time before the dollar crashes and/or we have a cataclysmic financial event in the U.S. More countries are moving away from the dollar and we simply can't invade every country like we did in Libya and Iraq.

Oh, and LinkedIn sucks for just about everything.

  • Upvote 2

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Yep, agreed with each of your points, HermitMunster.

Very happy I got invited here to the Oil Price Community.  It's great to have an active forum dedicated to Oil & Gas / energy.

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