China's petro & MENA's yuan | BELT & ROAD

"China now pays in RMB for some of the Russian crude. Will MENA crude be next?"

 

Florence Eid-Oakden, Ph.D, Chief Economist

Gordon Wong, Charlene Rahall, Analysts

In this week's report, Arabia Monitor provides an overview of China's oil dependence, evaluates whether the rise of ‘loan-for-oil’ deals will disadvantage OPEC producers vis-à-vis Russia and Brazil and discusses Beijing’s intention to purchase and price oil in the RMB in its drive to internationalise its currency. We tackle the following questions:

  • China has been diversifying the geographical sources of its imported crude. Is this a cause for concern for OPEC?
  • China now pays in RMB for some of the Russian crude. Will MENA crude be next?
  • China is expected to launch its own crude futures benchmark later this year in its bid to rival Brent and WTI. Will it succeed?

The Regional views series are thematic papers aimed at identifying and analysing factors behind medium to long-term economic trends shaping the region. Our analysis draws conclusions that help businesses and investors get ahead of the curve. As a firm staffed by Middle Easterners, we focus on insight rather than standard analysis.

To access this report, please click here.

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