China and Russia Looking to Drop US Dollar for Oil Payments

yuan-vs-dollarJust days after Beijing officially launched Yuan-denominated crude oil futures (which are expected to quickly become the third global price benchmark along Brent and WTI), Reuters reports China has taken the next major step in the challenging the US dollar’s supremacy as global reserve currency (and internationalising the Yuan) by paying for crude oil imports in its own currency instead of US dollars.
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Does $70 a Barrel Mark the High Point for Oil?

OilOil prices hovered below a three-year high last week, but the rapid run up in oil prices from below USD45 a barrel just seven months ago has lead many investors to ask if USD70 a barrel will mark the peak for the market? Learn more

Oil Jumps Most in Nine Months After OPEC Agrees to Output Cuts, But Will It Work?

opec-production-cut-announcementOil soared as much as 10% after OPEC approved the first supply cuts in eight years in an effort to ease a record glut and stabilise global markets, but how effective will the proposed cuts be in raising oil prices?
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Why Oil Prices Aren’t Dropping More After Failed Doha Talks

 

Whilst much was initially made of the collapse of OPEC talks with Russia over the weekend at Doha, it makes little difference to the balance of supply and demand in the global oil markets. The putative freeze in crude output was political eyewash.

Hardly any country in the OPEC cartel is capable of producing more oil. Several are failed states, or sliding into political crises.

Saudi Arabia’s hard-nosed decision to break ranks with its Gulf allies at the meeting in Doha – and with every other OPEC country  – punctures any remaining illusion that there is still a regulating structure in global oil industry. It told us that the cartel no longer exists in any meaningful sense. Beyond that it was irrelevant.

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