China's Crude Oil Futures Boom Amid Looming Iran Sanctions

 A U.S. decision to reimpose sanctions on Iran is supporting China’s newly established crude oil futures, and may spur efforts to start trading oil in yuan rather than dollars, traders and analysts said. Since launching in March, Shanghai crude oil futures ISCc1 have seen a steady pick-up in daily trading, while open interest - the number of outstanding longer-term positions and a gauge of institutional interest - has also surged. China is the biggest buyer of Iranian crude oil, and the recent boost in trading volume at least in part flowed from the sanctions decision, said Barry White, senior vice president for derivatives in Singapore at financial services firm INTL FCStone. China took almost a quarter of Iran’s exports in 2017, meeting around 8 percent of its import needs, leaving both sides exposed to the impact of U.S. sanctions. Beijing also wants to establish the yuan in physical oil markets, which would avoid the cost of exchanging dollars and increase the use of the renmimbi in global financial trade. Reimposed sanctions on Iran could give China leverage to demand oil imports from the country be priced off Shanghai’s crude futures.

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I could definitely see China choosing Iran over the US, if in the grand scheme it’s better for China. Communists and mullahs - ideal combination:ph34r:

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China's petro yuan in action...

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Get ready to pay high gas prices! I remind prices been up under this administration without withdrawal from Iran. They'll be about $4 a gallon before summer is over. Already $3 now, I hope I'm a wrong.

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Now we’ll see whether Iran wants Yuan. In that case, Iran could take yuan, and exchange surplus to gold.

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Iran may ultimately experience an increase in trade with China and Russia that offsets the loss in trade due to sanctions.  Iran may sell more oil to China for yuan, and what they don’t use to buy from China directly, they might use to buy military equipment from Russia.  Russia may then buy electronics and consumer items from China with the yuan.  The effect may be an overall increase in demand for the yuan and a drop in the demand for dollars.  

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In today's world, no one country can impose its will on companies in another country how they should behave in third countries. It's expected that the European Parliament in Strasbourg will call for a ban on complying with U.S. extra-territorial statutes that curb free international trade.
Secondary boycotts not only is wrong but simply it doesn't work causing divisions among allies , who should be working together.

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