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Added tags. Minor improvements.
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edit approved Apr 23, 2020 at 11:16
Rodrigo de Azevedo
edit approved Apr 23, 2020 at 11:16
Rodrigo de Azevedo
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Why Would Oil Suppliers Choose A Lower Priced Contractwould oil suppliers choose a lower priced contract?

The West Texas Intermedia futureIntermediate (WTI) futures contract has ranged from 6\$6 to 20 Dollars\$20 in the last 48 hours.  The May The ShanghaiShanghai International Yuan futurefutures contract is 205 in Mayis 205 Yuan (CNY). At 7 YuanCNY per DollarUSD, that comes out to about $29 (Dollars)\$29 per barrel, which is higher than the WTI futurefutures contract. What

In this case, why would be the reason a supplier would choose a DollarUSD-denominated contract in this case over a YuanCNY-denominated contract (assuming they would)?

Why Would Oil Suppliers Choose A Lower Priced Contract?

The West Texas Intermedia future contract has ranged from 6 to 20 Dollars in the last 48 hours.  The Shanghai International Yuan future contract is 205 in May. At 7 Yuan per Dollar, that comes out to about $29 (Dollars) per barrel, which is higher than the WTI future contract. What would be the reason a supplier would choose a Dollar contract in this case over a Yuan contract (assuming they would)?

Why would oil suppliers choose a lower priced contract?

The West Texas Intermediate (WTI) futures contract has ranged from \$6 to \$20 in the last 48 hours. The May Shanghai International futures contract is 205 Yuan (CNY). At 7 CNY per USD, that comes out to about \$29 per barrel, which is higher than the WTI futures contract.

In this case, why would a supplier choose a USD-denominated contract over a CNY-denominated contract (assuming they would)?

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Ms Jackson
Ms Jackson
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Why Would Oil Suppliers Choose A Lower Priced Contract?

The West Texas Intermedia future contract has ranged from 6 to 20 Dollars in the last 48 hours. The Shanghai International Yuan future contract is 205 in May. At 7 Yuan per Dollar, that comes out to about $29 (Dollars) per barrel, which is higher than the WTI future contract. What would be the reason a supplier would choose a Dollar contract in this case over a Yuan contract (assuming they would)?