China’s Petro-yuan “Becomes Real”: India Joins Group Dumping US Dollars in Oil Trades

By True Publica
Global Research, June 03, 2018
TruePublica 2 June 2018

When Donald Trump’s administration decided to withdraw from the Iran nuclear deal, the goal was to partner with allies to push Iran to negotiate a new agreement through even tougher sanctions. The new agreement would cover nuclear activities as well as ballistic missiles and destabilizing Iranian activity in Syria, Yemen and beyond.

World leaders in Asia and Europe, in particular, are reasonably sure that Washington really wants to see the collapse of the Iranian regime in order to control oil flows.

This was an arrogant miscalculation by Washington used to bullying its way around the geopolitical chessboard.

In 2015, under pressure from US sanctions, Russia decided to make moves to drop the USD on oil transactions. Gazprom Neft, the third-largest oil producer in Russia, moved away from the dollar and towards the Chinese yuan and other Asian currencies.

On March 26 this year, China finally launched a yuan-dominated oil futures contract. Over the last decade there have been a number of “false starts,” but this time the contract got approval from China’s State Council.

Will Oil End the American Century?

With that approval, the “petroyuan” became real and China set out to challenge the “petrodollar” for dominance. Adam Levinson, managing partner and chief investment officer at hedge fund manager Graticule Asset Management Asia (GAMA), already warned last year that China launching a yuan-denominated oil futures contract will shock those investors who have not been paying attention.

Paying attention is what those very same investors are now doing.

Already, the petroyuan has proven successful. 15.4 million barrels of crude for delivery in September changing hands over two and a half hours in its first day of trading.

With Washington’s withdrawal from the Iran nuclear deal, the EU27 backed by Britain decided enough was enough and concentrated efforts to protect business to side-step US sanctions for trading with Iran.

Then comes the news yesterday that India will reportedly pay for Iranian oil in rupees as the two countries seek to bypass the US economic pressure on Tehran.

China is the world’s biggest buyer of oil. America is the second and India is the third. Whilst the USA buys about $110 billion of oil each year – China and India combined – buys nearly $200 billion. The EU including Britain buys another $200 billion.

On oil trades – America is outgunned by the combined weight of its competitors.

These moves will not cause the USD to crash as about 88 per cent of the average daily turnover of foreign exchange instruments is against the dollar.

It took the US dollar nearly a century to unsettle the British pound that had been enjoying its preeminence through the 19th century and the first half of the 20th as the global reserve currency.

However, Washington may well be reeling from the fact that they don’t really have many friends any more.

The loosening of the U.S.-Europe transatlantic alliance is now forcing the EU to find its feet as a more independent superpower. The EU has new, economically driven allies on its side and America is facing even more challenges as it attempts to flex muscle and push back – no doubt starting with an escalating trade war. . .

Source: China’s Petro-yuan “Becomes Real”: India Joins International Group Dumping US Dollars in Oil Trades to Bypass US Sanctions

14 thoughts on “China’s Petro-yuan “Becomes Real”: India Joins Group Dumping US Dollars in Oil Trades

  1. I figured this would happen eventually. Most of the world now views the US as a terrorist empire. I believe in the near future many current allies will be demonstrably former friends. We will be taken apart economically and financially….which is obviously happening now. It seems no matter how hard we fight to retain our country, those who want to destroy it from within are unstoppable.

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    • I agree totally, ppjg. If we are powerless to stop the collapse, I guess the next best thing is to be organized to create a fairer more democratic system when the house of cards collapses.

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  2. “It took the US dollar nearly a century to unsettle the British pound that had been enjoying its preeminence through the 19th century and the first half of the 20th as the global reserve currency.”
    ~ We in America have forgotten that world dominance is not everlasting.

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    • I think they do know it’s collapsing, Rosaliene. Which is why greedy billionaires are running around trying to grab as much wealth as they can for themselves – and building underground bunkers out in the boonies.

      Liked by 1 person

      • The 400 or so old nuclear reactors, and fuel pools will start blowing and catching fire about the time the geeks start going for their bunkers. No one or nothing to stop them.

        Real genetecists, medical doctors, evolutionart biologists have proven what will happen in laboratories since 20 and at major catastrophes like chernobyl and fukushima.

        A genetecist in the 20s, showed that when an environment has enough radionuclides 1. Sperm and ova become more non viable. 2. Severe heritable mutations breed a sprecies into extinction in 7 or eight generations.

        It was shown with fruit flies in the 20s, 40s and fifties. Mice were later used for similar experiments. . A rare butterfly was driven to extinction by fuku, through heritable mutation after 10 generations.

        80 percents of the children have recesium markers for heart defects, in belarus and chernobyl since 1987.

        Usually sterility kills the species off, after the 2nd or third generation, if their are enough high beta and gamma emitters around, like cesium 137, cobolt 60, strontium 90, iridium, and all their cogeners and daughters, present. They last 300 years.

        The first gluts of radioactive thyroid will be the the first punch. The other radionuclides will be the knock out punch. The environment will be virtually saturated with ultra-lethal radionuclide poisons, that are super mutagenic, super carcinogenic, super teratogenic and lethat in billionths of a gram, when biocummulated.

        Radionuclide pollution is a major contributing factor, to 75 percent of insects being gone in the past 40 or 50 years..

        Dont listen to any nnsa, or nuclear propaganda. It has been going on too long!

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        • Excellent points, Doug. I have been anti-nuclear since 1980 and am unlikely to change my stance at this point. I’m a great fan of Australian antinuclear activist Dr Helen Caldicott, who founded Physicians for Social Responsibility. I was a member for many years.

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  3. As other countries move to protect their economic future, the U.S. just seems hell bent on driving yet another nail into its coffin. With severe weather devastating much of the U.S. from floods in Maryland to massive wildfires in California, Colorado and New Mexico to storm damaged areas in Alabama, Mississippi and Louisiana to a volcanic eruption in Hawaii, to storm damaged Puerto Rico, whose power grid still is not completely restored, many Americans are not even getting any needed help from the state and federal government. Much less are they seeing any improvements in other areas.

    Not to forget that even the lettuce here in the states has caused hundreds of people to fall ill from a severe strain of e coli and several to actually die and one must sit up and take notice that the decline of the U.S. is about to become even more devastating. This truly goes to the fact that when a country speaks of nothing but exceptionalism, that is tempting fate. Americans are not ‘god’, no matter how much they think they are and something IS trying to tell U.S. something!

    I have also noticed that the quality of food, medicines, household goods and damn near everything else is declining. There is something really wrong here and it is extremely serious. Add to that the retail and fast food industries are dying and there is evidence of that every single day and the situation is even worse. In the online addition of my local paper, there was an article that merely stated that a Dairy Queen just up and closed on Wednesday with no prior notice. Kmart is gone. Sears is gone. The mall is damn near dead and we’ve only got one and the ‘Food Court’ is laughable with only 4 places to get a meal and even McDonald’s left years ago. The city itself is even falling into decay. Homes all across the city are either leaning precariously or have pieces of the outside falling off and a house that was empty caught on fire and was completely destroyed. I have never seen anything like this.

    This empire is indeed, dying AND how! And the poor are feeling the effects first. But it will spread!

    Liked by 1 person

    • All of this is too true, Shelby. The speed of the decay is much more rapid than any of us expected – though I expect a lot of America’s supposed greatness was pure sham. I expect New Zealanders are better prepared than Americans. They’re so used to being poor that they never quit producing their own veggies (and many their own eggs) in their backyard.

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  4. Get rid of the crumb bumbs like fuko the clown and his gang of neoconservative fascists and frauds. Build a sustainable economy here. Everything, everyone think they know here is wrong! Let other countries have democracy so their people will stay there! Get rid of the vampires, casino games, and frauds! Stop the foreign imperialism fraud that is sucking us dry, makes millions of tons of radioactive shit and setting us up for a fukushima! Set the world up for nuclear armageddon. Things can be far worse than any individual can imagine. Go to mayak, where everyone has cancer and there are so many birth defects. Go to ukraine, flipping nazie and civil war! Fukushima where things are just plain hell. Somalia where europe has been dumping millions of tons of radioactive shit for 50 years and there is constant civil war. The insanity of the twiste oligarchs and nucleoapes, knows no bounds! Stop subsidizing trillionaires that will not pay a living wage and keep jacking rents up. Stop subsidizing nuclear reactors, and coal plants that are making everyone sicker and not providing any extra jobs!

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  5. Trump is a racist bastard. He purposely genocided 4600 americans, in puerto rico, while giving white texans 100 million for Maria.

    Trump is genociding palestinians. Trump had 37,000 elderly people, kicked out of nursing homes in louisiana.

    Trump is continueing the genocide of navajos, hopis, and havasupais. Those natives, were nevada open air atomic downwind-victims. They were also uranium radioactive-waste victims. Trump is genociding them again, by opening up uranium mining in the grand canyon.

    Trump is subsidizing old nuk reactors, that are ready to blow. That are spewing tritium dioxide into the areas around them.

    Trump is subsidizing coal plants that spew massive amounts of particulates, with radium and arsenic into the air.

    Trump is subsidizing fracking, which is further contaminating most of muricas water with radium.

    Trump has cut most taxes on the rich-rentier class, while 100 million americans starve, elderly ; children go without shelter. Little or no healthcare. Trump has a 1 trillion military budget with a shitload of nukes, in an age, when there should be none.

    Trump is a liar, and a general sack of of demented shit. Trumps bastard silaw got 1 billion from the saudis to bail him of a bad real estate deal in trade for billions in weapon and nuclear reactors.

    Trump got 500 million from the chinese, to line his pockets in the most egregious, treacherous, and worst case of personal bribery by a foreign govt, in american history.

    Trump is killing kids and adults in america, by deregulating poisons, chemicals, and radionuclides in food and water.

    Trump is in illegal wars yemen, afric afghanistan.

    Trump is intergering in nicaragua and has interfered in brazil. He is interfering in venezuela. There will propably be sanctions on iran and, war there soon that will kill millions.

    What will it take to dump trump, if it is possible before it is too late?

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  6. Don’t worry, Nick. Trump will be gone before lunchtime once he’s outlived his usefulness to the corporate elite. I’m not sure how far his plans to finance the coal and nuclear industry will work – since the banks won’t touch these industries with a barge pole and the world has clearly reached its limit for tolerating US government debt. US sanctions are just a convenient excuse to switch out of the US dollar to more reliable currencies.

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  7. Hi Dr. Long time no discourse
    I have been posting mostly videos and neglecting my emails. I have been a YouTube addict lately. I reccomm. Ben Fulford latest 6.4.18 post about fall of Khazarians, Netanyahu and the BLACKROCK,VANGUARD AND STATE STREET-BUSH CABAL. If the Leo Wanta trillions are seized and redistributed, it may save the global economy. I understand the elite are flocking to NZ TO TRY to escape the purge. Stay in touch. Also ABEL DANGER= Field McConnell and David Hawkins really seem to know everything. VISIT THEM ON DISCORD .

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  8. Good to hear from you, John. My preferred solution for the global economy is to ban private banks from creating money and to restore this function to government as Lincoln did with his greenbacks. I’ve been pretty busy with Positive Money NZ trying to launch a petition to Parliament to allow the NZ government to issue our money. I still subscribe to your blog but really don’t have much time to spend on the Internet at the moment.

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