for Crude benchmark
Beijing’s motivations for establishing a crude oil benchmark are complex, with economic, domestic, and geopolitical considerations taken into account. China’s drive for the contract to flourish will be persistent, giving it a greater chance of long-term success.
From changing the dollarized oil market to relationships with major Middle East producers, China's growing clout in the oil trade has manifold impacts for American interests.
Regulatory turf wars, disputes over the eligible crudes for physical delivery, and a sharp downturn in trading in a number of markets in the region have delayed the opening of China's crude benchmark.
The IMF's inclusion of China’s yuan in the global currency basket gives the country a big symbolic victory ahead of the launch of its yuan-denominated crude futures exchange.