China begins first ever yuan oil futures trading in Shanghai

Baku. 26 March. REPORT.AZ/ China launched its first ever crude-futures contract as the world's biggest oil buyer seeks to wield greater power over pricing and challenge benchmarks in the US and Europe. Trades began today at the Shanghai International Energy Exchange (INE), a subsidiary of the Shanghai Futures Exchange (SHFE)

Report informs citing the TASS, the launch ceremony took place on the site in the business district of Pudong.

The regulator “has the confidence, resolution and capability to build a sound crude oil futures market,” Liu Shiyu, chairman of the China Securities Regulatory Commission said at the Shanghai Futures Exchange before trading got under way. “It will play an important role [in China’s economy].”

Huang Lei, an independent commodity futures market analyst, said it was just “a first step for China to gain pricing power.”

According to the exchange, the volume of the contract will be 1 thousand barrels, the minimum price step is 0.1 yuan per barrel. Deliveries will be made from the ports of Oman, Qatar, Yemen, Iraq (Basra) and East China.