So, what's the deal with perto-yauan?

Evan Wright
Evan Wright

So, what's the deal with perto-yauan?
Will USA wreck China for this like they wrecked Libya?

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All urls found in this thread:

shfe.com.cn/en/AnnouncementandNews/SHFENews/911327703.html
shfe.com.cn/en/AnnouncementandNews/SHFEAnnouncement/911329982.html
youtu.be/xRLEFTlUbvo

Benjamin Adams
Benjamin Adams

USA is too weak to fuck with us

Noah Reed
Noah Reed

Cool proxy Chen.

Chase Cox
Chase Cox

Shut up and make my socks, slave

Leo Gomez
Leo Gomez

RIP gaddafi, i kinda admired the guy
shame they killed him over the gold dinar

Kevin Gutierrez
Kevin Gutierrez

No. USA will wreck any oil producer who provides oil in yuan(less China).

Daniel Taylor
Daniel Taylor

And Iraq

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Carter Phillips
Carter Phillips

The timing of sanctions and the introduction of Yuan Oil futures certainly indicates the US was worried and wants to pressure China.

Here are the contract specs:
shfe.com.cn/en/AnnouncementandNews/SHFENews/911327703.html

Listing Exchange: Shanghai International Energy Exchange
Symbol: SC
Crude Type: Medium Sour Crude (max 32.0 API Gravity, max 1.5% Sulphur)
1000 barrels/contract
Trading Margin: 5% (heard it's gone up to 7%)
priced in RMB, 0.1 RMB price fluctuation
Limit Up Down +/-4% from previous day settlement price
12 near month contracts, 8 quarterly contracts after (so future chain goes out 3 years only)
Trading Time: 0900-1130, 1330-1530 (4.5 hours a day only, compared to WTI on GLOBEX 23 hours/day, Sunday 1800-Friday 1700, no trading between 1700-1800 daily)

Here is the delivery details for the future:
shfe.com.cn/en/AnnouncementandNews/SHFEAnnouncement/911329982.html

Here is the Volume:

Date Crude Oil
Trading Volume (lot) Turnover (yuan) Open Interests (lot)
20180326 42336 18346686600.0 3558
20180327 41140 17538481400.0 4444

Open Interest is the # of active open contracts, so 3.5M barrels on trading Day 1, 4.4M barrels on Day 2. Actual traded volume was 42M barrels or about 1000% of OI, indicating a lot of speculators. Total Yuan traded was around $2.8B USD. This compares to WTI which trades now on average over 1M-1.5M futures across all delivery dates, which is 1-1.5 billion barrels a day (world production is only 98M bpd or so. Dollar volume is $65-$100B/day of WTI futures are traded compared to 3B for the RMB Medium Sour.

WTI is also a light sweet crude, API gravity of 39 and sulphur <0.5%.

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Joseph Phillips
Joseph Phillips

If left uncheck the petroyuan would undermine the USD and cause an economic collapse. Also if China is able to run their economy solely on the petroyuan they would be able to call the American debt and survive the resulting global economic collapse.
The only reason the USD is still afloat is because we coerce everyone on Earth to use it.
But it won't be left unchecked. The US will probably just be at eternal war with all the nations who produce oil in mass quantities

Thomas Morgan
Thomas Morgan

Loyal 'Australian'

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Christopher King
Christopher King

how many god damn polish meals are you gunna post to this board

Henry James
Henry James

god damn everyone one of your posts makes me hungry, what is that? looks good

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Blake Turner
Blake Turner

Muslims
Those aren't Chinese people, user.

Logan Morales
Logan Morales

Damn I wish everyone would start hating China and not us.

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Aiden Ortiz
Aiden Ortiz

china will steamroll the planet.

Gavin Green
Gavin Green

I'm sorry the Best Rival bantz became Worst Enemy again

Julian Thompson
Julian Thompson

I must know this as well what's in the soup to give it that amazing color? Fucking illegal aliens using burger flags can't appreciate SWPL food.

Daniel Jenkins
Daniel Jenkins

I think most average people don't understand all the hate.

Ethan Morales
Ethan Morales

But you don't really hate me do you John.

Josiah Watson
Josiah Watson

The RMB Medium Sour also has a storage fee built into the future, 0.2 RMB/barrel/day, so for near months it's about 6 RMB/barrel = 6000 RMB = 950 USD per contract if held for the entire month. The quarterlies would be 90 days or 24000 RMB in storage costs = 3800 USD in storage costs.

If medium sour RMB averages lets say 400 RMB or ~$64USD, then 1 contract for delivery in 30 days would be 400,000 RMB or $64,000 USD. Storage would be $950, for a total cost FOB of $64,950. If taking delivery that is not a big deal, because it eats away a tiny percentage of a refiners crack spread. But if you are a speculator, and speculate with a 5% margin, you're collateral is 40K RMB or $3250 USD, assuming the price stays steady, you have to put up 400 RMB or $32USD in storage costs a day to hold the position, or 1%/day. Then factor in the oil volatility at 27.38 right now, and you're dealing with daily moves of 1.74% every 1/3 days, 1.75%-3.48% every 20 days and a 3.48-5.22% every 100 days etc. But of course we know a standard distribution doesn't apply to oil volatility, so the RMB sour is not exactly suited for a speculator, considering you it's limited liquidity, thin volume, the ability of Big Ma to intervene whenever, low LUD further limiting liquidity and storage costs which rape high-leverage speculators.

In short I wouldn't worry about this contract affecting the dollar at all. Remember, China already has all refined products in RMB.

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Xavier Campbell
Xavier Campbell

Fuck you Polish cuisine is the shit.

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Samuel Scott
Samuel Scott

bread
Wow that's some rare and unique Polish cuisine.

Daniel Fisher
Daniel Fisher

I would eat the shit out of that.

Tyler Garcia
Tyler Garcia

What do you think all this stirring up N.Korea is about.

Second Korean war will destabilize China. Their economy is leveraged to the hilt, and they've squeezed the lemon to the pip with regards to the environment. Not to mention the demography disaster ahead of them. Korean is just the spark, along with Taiwan.

Jacob Mitchell
Jacob Mitchell

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William Lee
William Lee

Why would ANYONE want a war in Korea.
Norks don't want it because they will get buttfucked, probably even if US doesn't jump in.
Sorks don't want it because it will buttfuck the investments in the region and overall economy.
Besides, if Sorks win and unify Korea they would have to spend GARGANTUAN amounts of money on pulling the North out of 1950. All the Sorks would have to pay huge taxes to help the people who fought them for seventy years, imagine how happy everyone would be.

Dominic Ortiz
Dominic Ortiz

So, what's the deal with perto-yauan?
no one cares. china just pressures their own institutions to trade it

Luke Gutierrez
Luke Gutierrez

come on man what is that?

Justin Gutierrez
Justin Gutierrez

what is name of soup

Anthony White
Anthony White

he was the iron sheiks estranged cousin
youtu.be/xRLEFTlUbvo

Jace Wood
Jace Wood

It's a meme like everything else China does. Brainwashed chinks will think this is the latest step to China taking their rightful place as ruler of the world; real people understand that nobody wants shitty Yuan, petro or otherwise.

China cannot survive without hundreds of billions of welfare from the US and EU every year. Now that we have a strong US President, we're going to blow that house of cards down.

weak
As proven your strong, wise and powerful leaders blocking Internet searches for the letter N after your country took a massive step backward by appointing your version of George W Bush as President for life, right?

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Hunter Nelson
Hunter Nelson

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Dominic Rodriguez
Dominic Rodriguez

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Angel Bailey
Angel Bailey

poles are not subhuma-

Gavin Parker
Gavin Parker

So, what's the deal with perto-yauan?
There's no deal. Just a bunch or moronic Chinese politburo thinking they can replicate the petrodollar without controlling the oil trade.

Chase Gomez
Chase Gomez

The timing of sanctions and the introduction of Yuan Oil futures certainly indicates the US was worried and wants to pressure China.
Or the U.S. wants to put China in its place.

Ayden Walker
Ayden Walker

He has a son running to become president

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