for Crude futures
SAFE's Matt Piotrowski talks to Platts Capitol Crude about China’s motivations behind its crude futures contract, what its chances are for success, and why it matters for U.S. consumers and American energy security.
The slowdown in action at the CFTC is worrisome since it comes at a time of large growth in financial markets, including petroleum futures, which are susceptible to manipulation and aggressive trading tactics.
Oil prices all along the curve have taken major hits. The futures curve may be underestimating risks from both geopolitics and deferred investment, or the rapid descent of the curve could in fact indicate the market is in for longer-term structural weakness.
China’s forthcoming launch of a crude futures exchange to be traded with the yuan is another major step to cement itself as a global economic powerhouse and challenge the U.S. currency’s dominance in oil markets.