Beijing intends to move away from the dollar in the oil trade
Beijing intends to move away from the dollar in the oil trade
Tuesday 08 September 2015
China intends in October next month launch its own oil price index, similar to the Khami Brent and West Texas Intermediate, in the context of the pursuit Beijing to play a more important role in oil markets.
Beijing and Chinese plans to conclude contracts in yuan instead of the US dollar, thus reducing the dominance of the dollar on the prices of energy resources.
China is one of the largest oil buyer in the world, where oil consumption by about 60% dependent on imports from outside the country.
According to “Reuters” agency, citing a source that the Shanghai Stock Exchange International Energy (INE) Posted on August draft last month futures contracts for market participants, to be the first contracts that allow direct participation of foreign investors.
This is not the first step to opening up of the Chinese oil market, where Beijing has allowed in the month of July for Chinese companies for the import of crude oil, while import was previously monopolized by state-owned companies.
Chinese, will compete for future contracts in the crude market which amounts to trillions of dollars, Khami “Brent” contracts and “West Texas Intermediate” who dominate the market.
Brent crude is in the United Kingdom, and West Texas Intermediate crude in the United States, two main criteria for the pricing of crude oil.
alqurtasnews.com
