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Economy

China sees new world order with oil benchmark backed by gold

Yuan-denominated contract will let exporters circumvent US dollar

Exports from Russian oil fields like those in Bashkortostan could soon be traded in yuan to circumvent U.S. sanctions.   © Reuters

DENPASAR, Indonesia -- China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry.

The contract could become the most important Asia-based crude oil benchmark, given that China is the world's biggest oil importer. Crude oil is usually priced in relation to Brent or West Texas Intermediate futures, both denominated in U.S. dollars.

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