Few geoeconomic game-changers are more spectacular than yuan-denominated future crude oil contracts – especially when set up by the largest importer of crude on the planet. And yet Beijing’s media strategy seems to have consisted in substantially play down the official launch of the petro-yuan at the Shanghai International Energy Exchange. Still, some euphoria was in order. Brent Crude soared to $71 a barrel for the first time since 2015. West Texas Intermediate (WTI) reached the highest level in three years at $66.55 a barrel; then retreated to $65.53. A series of petro-yuan “firsts” include the first time overseas investors are able to access a Chinese commodity market. Significantly, U.S. dollars will be accepted as deposit and for settlement. In the near future, a basket of currencies will also be accepted as deposit. Does the launch of the petro-yuan represent the ultimate deathblow to the petrodollar – and the […]