# China oil futures launch may threaten primacy of U.S. dollar: UBS

> The launch of yuan-denominated oil futures on the Shanghai exchange is China's first commodity derivative open to foreign investors. UBS argues that yuan demand from foreign participants could strengthen the currency and divert trading away from the dollar.

- Date: 2018-03-26 · published 2018-03-26T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/66216-china-oil-futures-launch-may-threaten-primacy-of-u-s-dollar-ubs
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Yuan-priced crude benchmarks could shift some oil trading away from dollar pricing and boost demand for the yuan. This is a structural currency factor, with limited direct effect on feed commodity prices.

## Read by commodity

- DXY: bearish ▼
- WTI: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2016-12-02 | [Dollar tanks as U.S. jobs cast doubt on pace of future hikes \| Reuters](https://feedsoft.ai/events/73648-dollar-tanks-as-u-s-jobs-cast-doubt-on-pace-of-future-hikes-reuters.md) | -0.5% | +0.6% |
| DXY | 2019-01-04 | [Dollar cycle may be about to turn, supporting oil prices: Kemp](https://feedsoft.ai/events/61292-dollar-cycle-may-be-about-to-turn-supporting-oil-prices-kemp.md) | -1.2% | -1.4% |
| DXY | 2017-08-21 | [Macroscope \| How to read the outlook for the US dollar \| South China Morning Post](https://feedsoft.ai/events/69641-macroscope-how-to-read-the-outlook-for-the-us-dollar-south-china-morning-post.md) | -0.6% | -1.3% |
| DXY | 2019-11-04 | [Three Forces Weakening US Dollar’s Grip On Commodity Pricing \| Wood Mackenzie](https://feedsoft.ai/events/55960-three-forces-weakening-us-dollar-s-grip-on-commodity-pricing-wood-mackenzie.md) | +0.5% | +1.0% |
| DXY | 2017-12-15 | [Here’s what’s threatening the dollar in 2018 - MarketWatch](https://feedsoft.ai/events/67696-here-s-what-s-threatening-the-dollar-in-2018-marketwatch.md) | -0.2% | -2.5% |
| WTI | 2026-07-29 | [ING Says Dollar to Take Cue from Oil Prices If Fed Holds Rate \| Financial Post](https://feedsoft.ai/events/18262-ing-says-dollar-to-take-cue-from-oil-prices-if-fed-holds-rate-financial-post.md) | -4.4% | +3.8% |
| WTI | 2026-01-01 | [COMMENTARY: China overtakes OPEC+ as the main oil price maker](https://feedsoft.ai/events/21669-commentary-china-overtakes-opec-as-the-main-oil-price-maker.md) | +0.8% | +13.0% |
| WTI | 2017-12-01 | [Crude oil prices to be under pressure in first half of 2018: S&P](https://feedsoft.ai/events/67647-crude-oil-prices-to-be-under-pressure-in-first-half-of-2018-s-and-p.md) | -1.5% | +5.3% |

## Sources

- reuters.com: https://www.reuters.com/article/us-china-oil-futures-dollar/china-oil-futures-launch-may-threaten-primacy-of-u-s-dollar-ubs-idUSKBN1H227E/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.