The dollar recovered across the board: USD/CNY closed at 6.7057 (+0.12%), USD/JPY at 154.07 (+0.30%), USD/KRW at 1,345.51 (+0.12%); EUR/USD slipped to 1.1566 (-0.21%) and EUR/CNY to 7.756 (-0.24%).

With Brent at USD 106.992/bbl and WTI at USD 102.382/bbl both quoted in dollars, a softer yuan directly raises the onshore landed cost in local currency: at 6.7057, Brent converts to roughly CNY 717/bbl, or about CNY 5,240/t on a 7.3 barrels-per-tonne basis before freight and duties.

For the operator: the seven transshipment grades - ESPO, Dubai, Oman, Urals, Basrah Light, Bonny Light and Lula - settle mostly in dollars. A 1% yuan weakening lifts landed cost by roughly 1% and shaves transshipment margin; a weaker yen and won raise Northeast Asian buyers' local-currency bid, softening regional competition.

The fix is to hedge with cross-border CNY or an NDF and align title transfer with the settlement currency so no spot exposure is left open.