I have just read that China is apparently planning to launch its own oil benchmark in October, thus competing with the Brent & WTO oil future markets! (See attached)

Would it be possible for China to succeed?  … Should they really do, that could create unwanted volatility in these markets!

As usual, your view would be appreciated.

Eoin Treacy's view

Thank you for this article which may be of interest to other subscribers. Major oil producing countries tend to have oil benchmarks. Brent crude for the North Sea and Nigeria, West Texas Intermediate for the USA, Dubai Select for the Middle East and Western Canada Select for Alberta. China’s plan to create a benchmark represents an effort to pay for more imports in its own currency rather than any serious threat to upsetting the global pricing mechanism for the commodity.

Timing is opportune considering the stress many producers are under but over the medium term, suppliers will still have the upper hand and this will be particularly true if the Yuan’s advance has ended. Let's bear in mind that despite the fact Russia is among the top three oil producers it does not have an internatinoally recognised benchmark of its own not least because of the volatility in the Ruble.