China’s government introduced yuan-denominated crude oil futures. It took half a decade to develop, improve and launch its first futures contract. Trading started on the Shanghai International Energy Exchange (INE).
During first minutes of trades, the contract traded at 440.2 yuan or $69.71 a barrel.
In case the new contract proves attractive to investors, it could become a benchmark for global oil transactions, marking the beginning of the end of the petrodollar.
China surpassed the US in crude oil imports in 2017 by importing about 8.43 million barrels per day.
At the first stage, yuan-denominated prices will be adjusted when crude oil fluctuates more than 4% from the previous day’s closing price. It will trade from 9am to 11.30am, and 1.30pm and 3pm local time.
