petrodollar

The Trump White House formally announced the list of Chinese products to be hit with tariffs.
The US will implement 25% tariff on $50 Billion in Chinese imports, representing 1,102 product lines with the list of imported goods among those listed on China’s 2025 plan.
The US tariffs against China will be implemented in two tiers.
The first tier on July 6th will cover $34 Billion in imports. A second tier will cover the remaining $16 Billion, or 284 product lines.

Following Trump’s withdrawal from the 2015 multilateral Joint Comprehensive Plan of Action on Iran’s nuclear enrichment program, and the resumption of extraterritorial sanctions coming up close behind, Europe is left with a sticky situation.
Either they can suit their own interests and express their regret to their American partner, or, vice versa, abide by America’s foreign policy of Iranian isolation and drop all business ties with Iran.

Yesterday, Putin observed the necessity of increasing Russia’s economic sovereignty and independence from the petrodollar system, stressing that the West is boosting this process through its economic bullying in the form of sanctions. TASS reports:

CARACAS, VENEZUELA — With U.S. sanctions suffocating the South American nation of Venezuela, incumbent President, and U.S. target, Nicolas Maduro is preparing for an election in late May that will likely result in his retaining his office.

China recently opened up crude oil futures trading this past Monday to a very enthusiastic market interest with its first day seeing nearly $3 billion, giving a considerable boost to the value of the Yuan on the international market. The opening of this new futures market is a bid to hedge price volatility and obtain greater pricing power in the crude business, given that China is the world’s largest importer.
 

BEIJING — Wall Street is bracing for a potential shake-up as China is set to launch its first-ever crude oil futures contract late March at the Shanghai Futures Exchange.
The move, which had been laid out in 2012 but faced delays over possible market turbulence, could represent a bold step forward in China’s rise as an economic superpower and global hegemon. The contracts will be priced in China’s currency, the renminbi or yuan, marking the birth of what many are calling the “petroyuan.”

The Petrodollar is gaining strength. So is the Petroruble, to coin a phrase.
Yes, that was a pun.
The truth is that over the last twelve months, oil prices have been gradually and steadily on the increase.  At the beginning of 2017, the price for a barrel of crude was about $56.  It sunk gradually until June of last year, bottoming out in the mid $40’s, and has been on the rise again ever since.

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