Discussing the CNY-Crude with Alasdair Macleod


With the yuan-denominated crude oil contract ready to begin trading on March 26, we thought we'd check in today with an expert on the significance of this, our pal Alasdair Macleod of GoldMoney.

For this call, I simply asked Alasdair to lay out the short-term and long-term significance of pricing crude oil in something other than U.S. dollars. This new contract not only disrupts the crude oil market, it also impacts gold, forex and geo-politics. So please be sure to listen to this entire podcast and then consider the future implications of this new CNY-Crude contract.



Mar 17, 2018 - 12:19am

Thanks AngryCitizen

I will try Brave.

Mar 16, 2018 - 10:27pm

Canary, And Everybody Else

Why are you still using Firefox?

Brave is the browser for privacy: Ad blocking, privacy from malware, spyware, ease of electronic payment to sites you support (haven't tried that yet), and it loads much faster due to no ads!

From my opening page:

  • 12,737Trackers Blocked
  • 7,349Ads Blocked
  • 4,993HTTPS Upgrades
  • 17minutesEstimated Time Saved

Whatcha waitn' for??


Just sayn'

Mar 16, 2018 - 1:06pm

jaba, this would be so wonderful for many people..stable

mid East...will happen..is happening..

I quote below a relevant extract from my book FROM WEST TO EAST The Greatest Transfer of Power and Wealth in the History of Mankind, which may be of interest, as many predictions made in the book are unfolding along the lines envisaged:-

Although Saudi Arabia is a long-standing ally of the United States of America, that close relationship has been eroded over the last several years. Former US Ambassador to Saudi Arabia Charles W. Freeman Jr. noted that “We’ve seen a long deterioration in the USA-Saudi relationship, and it started well before the Obama Administration.”

US-Saudi relations have been placed under additional strain as a result of the recent Iran nuclear deal, which saw the US-led sanctions against Iran lifted in January 2016 despite very strong objections from both Saudi Arabia and Israel.

The deteriorating Saudi relationship with the United States has also been exacerbated by the recent US bill passed into law allowing US citizens to seek legal redress against Saudi Arabia regarding the 9/11 terrorist action.

Under the circumstances it would not be surprising if Saudi Arabia were actively seeking a new ally (protector, to replace the United States) to safeguard Saudi interests in the Gulf. Perhaps Saudi Arabia might approach China about the possibility of becoming its replacement ally and protector, particularly as China buys a great deal of Saudi oil.

It is conceivable that China might invite Saudi Arabia to become a member of the SCO, hypothetically conditional upon Saudi Arabia (a) settling its differences with Russia and (b) making a commitment to entering into, say, a nonaggression pact with Iran and Syria.

Such an accord, if possible, would provide Saudi Arabia with a new protector, the SCO. It would also enable Saudi Arabia, like Iran, to sell its non-US oil exports in currencies other than the US dollar, namely, the yuan, euro, and yen, safe in the knowledge that it has the support of both China and Russia through the SCO.

Such a development would be a truly devastating blow to the status and strength of the petrodollar, and a real boost to the emerging, fledgling petroyuan and petroruble.

If as outlined above, Saudi Arabia did become a member of the SCO, any improvement in Saudi-Iranian relations would have the significant added benefit of perhaps, just perhaps, providing a possible basis for a gradual rapprochement between Sunni and Shiite Muslims. That, in turn, could provide the Middle Eastern nations with an opportunity to create some very long overdue peace and stability in the region.

That would be a historic development and an extremely welcome, refreshing change from the United States of America’s deliberate policy of creating social unrest, distrust, economic instability, regime change, and proxy wars in the region.

But perhaps the writer is indulging in too much wishful thinking, however, where there is a will, there is a way forward.

It’s worth noting that the Saudi Arabian government may sell a 5 percent stake in ARAMCO (Arab American Oil Company), the state oil company, which could raise USD$100 to 150 billion. If Saudi Arabia does decide to sell a 5 percent stake, do not be surprised if China buys the whole stake.

The sales proceeds would bolster Saudi Arabia’s cash reserves, which have taken a beating due to substantial budget deficits as a result of low oil prices and its costly war with Yemen.

The strength and dominance of the petrodollar is under continuous and growing pressure from the de-dollarisation policies of China, Russia, and Iran.

Russia is currently the largest producer and exporter of oil, whilst China is the largest oil refiner in the world. When China and Russia open their respective oil and gas futures exchanges, which is expected in the first half 2017, the pressure on the petrodollar will ratchet up another several notches, because it will significantly increase the Chinese and Russian influence on the global energy markets.

Mar 16, 2018 - 12:08pm

Thomas More, re holidays..a week from Sunday is

Palm Sunday..could that be a date for 'something'?

Mar 16, 2018 - 12:01pm


Oil just jumped a dollar, what happened?

Thomas More
Mar 16, 2018 - 11:20am

No problem

I am not out to embarrass or intimidate anyone. I am very surprised that no one commented on the bad Retail Sales number - which got swept under the rug - but everyone in stocks is still enjoying the Employment Number of last Friday. If you look at your favourite stock chart, we are seriously back-slipping presently.

It is only a gentleman's bet - no skin involved.

Mar 16, 2018 - 11:20am

@Thomas More....

I'm not an expert on economy...Before I started investing in PMs (late 2008), my economic skills were on 101 level, and trading ability even lower, but I was making money, somehow...Three years later my fortune changed drastically...Though I've learned quite a bit since, I usually try to copy and post comments of others I found interesting and reasonable.

Thomas More
Mar 16, 2018 - 11:12am

Oh not that Wash Cycle again

it must have been Monsieur Douchebag

douche = shower

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Thomas More
Mar 16, 2018 - 11:09am

Hi Canary

I take your Gentleman's bet. I bet that today's low holds (around 1310). GLD option sweet spot is around 125 - they will get it back near there before the close. I didn't see any reason for the ramps today - other than the usual BS that they are going to raise interest rates:

They are going to raise Interest Rates - and here's where I ask you to press the key.

With option expiry, They can do want they want with Stocks - and very easily. Monday is a new day - I think that the tide is changing for Them.

Wait and see

Mar 16, 2018 - 11:09am

The names are still valid

Wash cycles do NOT begin from a Large Spec NET short position. If you actually listened and paid attention every day, perhaps you'd know that by now.

In gold, now that The Banks have added nearly 10% to open interest in just this past week, they're trying to crush price before the FOMC. That's all it is.

You can call this current period whatever you'd like but a true Spec Wash and Rinse begins from massive Spec NET long positions..NOT from where we are today.

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Key Economic Events Week of 5/18

5/18 2:00 ET Goon Bostic speech
5/19 8:30 ET Housing starts
5/19 10:00 ET CGP and Mnuchin US Senate
5/20 10:00 ET Goon Bullard speech
5/20 2:00 ET April FOMC minutes
5/21 8:30 ET Philly Fed
5/21 9:45 ET Markit flash PMIs for May
5/21 10:00 ET Goon Williams speech
5/21 1:00 ET Goon Chlamydia speech
5/21 2:30 ET Chief Goon Powell speech

Key Economic Events Week of 5/11

5/11 12:00 ET Goon Bostic speech
5/11 12:30 ET Goon Evans speech
5/12 8:30 ET CPI
5/12 9:00 ET Goon Kashnkari speech
5/12 10:00 ET Goon Quarles speech
5/12 10:00 ET Goon Harker speech
5/12 5:00 ET Goon Mester speech
5/13 8:30 ET PPI
5/13 9:00 ET Chief Goon Powell speech
5/14 8:30 ET Initial jobless claims and import prices
5/14 1:00 ET Another Goon Kashnkari speech
5/14 6:00 ET Goon Kaplan speech
5/15 8:30 ET Retail Sales and Empire State index
5/15 9:15 ET Cap Ute and Ind Prod
5/15 10:00 ET Business Inventories

Key Economic Events Week of 5/4

5/4 10:00 ET Factory Orders
5/5 8:30 ET US Trade Deficit
5/5 9:45 ET Markit Service PMI
5/5 10:00 ET ISM Sevrice PMI
5/6 8:15 ET ADP jobs report
5/7 8:30 ET Productivity
5/8 8:30 ET BLSBS
5/8 10:00 ET Wholesale Inventories

Key Economic Events Week of 4/27

4/28 8:30 ET Advance trade in goods
4/28 9:00 ET Case-Shiller home prices
4/29 8:30 ET Q1 GDP first guess
4/29 2:00 ET FOMC Fedlines
4/29 2:30 ET CGP presser
4/30 8:30 ET Pers Inc and Cons Spend
4/30 9:45 ET Chicago PMI
5/1 9:45 ET Markit Manu PMI
5/1 10:00 ET ISM Manu PMI

Key Economic Events Week of 4/20

4/20 8:30 ET Chicago Fed
4/21 10:00 ET Existing home sales
4/23 8:30 ET Weekly jobless claims
4/23 9:45 ET Markit flash PMIs
4/24 8:30 ET Durable Goods

Key Economic Events Week of 4/6

4/8 2:00 ET March FOMC minutes
4/9 8:30 ET Producer Price Index
4/10 8:30 ET Consumer Price Index

Key Economic Events Week of 3/30

3/31 9:45 ET Chicago PMI
4/1 8:15 ET ADP Employment
4/1 9:45 ET Markit manu PMI
4/1 10:00 ET ISM manu PMI
4/2 10:00 ET Factory Orders
4/3 8:30 ET BLSBS
4/3 9:45 ET Market service PMI
4/3 10:00 ET ISM service PMI

Key Economic Events Week of 3/23

3/24 9:45 ET Markit flash PMIs
3/25 8:30 ET Durable Goods
3/26 8:30 ET Weekly jobless claims
3/27 8:30 ET Personal Inc and Spending

Key Economic Events Week of 3/9

(as if these actually matter)
3/11 8:30 ET CPI
3/12 8:30 ET weekly jobless claims
3/12 8:30 ET PPI
3/13 8:30 ET Import Price Index

Key Economic Events Week of 3/2

3/2 9:45 ET Markit Manu PMI
3/2 10:00 ET ISM Manu PMI
3/2 10:00 ET Construction Spending
3/4 8:15 ET ADP employment
3/4 9:45 ET Markit Service PMI
3/4 10:00 ET ISM Services PMI
3/5 8:30 ET Productivity & Unit Labor Costs
3/5 10:00 ET Factory Orders
3/6 8:30 ET BLSBS
3/6 10:00 ET Wholesale Inventories

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