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Page added on April 19, 2012
China to launch crude oil futures this year
China is expected to begin trading in crude oil futures within the year, a senior government official said on Wednesday, as the world’s second-largest oil consumer and crude buyer aims to increase its say in oil pricing.
“Within this year, China will launch an international crude oil futures market, the third such market in the world after the United States and the United Kingdom,” state news agency Xinhua quoted Guo Shuqing, chairman of the China Securities Regulatory Commission, as saying.
He said most of China’s new demand for crude oil is now met by imports, adding that Chinese imports accounted for 70 to 80 percent of newly added global oil production.
Local media said plans for crude oil future trading on the Shanghai Futures Exchange have been completed and are awaiting the approval of Chinese authorities.
Authorities are currently deciding between two competing plans, one which would establish dollar-denominated contracts and another with contracts denominated in yuan.
China crude oil imports rose 6 percent on year to 253.78 million tonnes, or about 5.08 million bpd, in 2011, official data shows.
Besides crude oil, China is expected to launch government bond and silver futures this year, Xinhua said.
The government is also studying the possibility of launching futures trading in agricultural products such as live hogs, late-season rice, eggs and potatoes, Guo was quoted as saying.
Currently, copper, aluminium, gold, and fuel oil futures, among others, are traded on the Shanghai Futures Exchange.
6 Comments on "China to launch crude oil futures this year"
BillT on Thu, 19th Apr 2012 2:09 am
I fully expect them to go with Yuan and not dollars. It would be to China’s benefit. Dollars would not as they are shrinking daily in purchasing power. Also yuan would increase China’s trading ease with many of the countries it exports to. The dollar is dying and this may put the last nail in the coffin.
solarity on Thu, 19th Apr 2012 3:28 am
* 17 April: OB announces he will seek more regulation of the oil speculation market.
* 18 April: China announces they will launch crude oil trading this year.
Touché!
DC on Thu, 19th Apr 2012 11:50 am
The United States of Oil is threatening Iran right now because they, amoung other things, they wished to open there own oil bourse.(not because of any fictictous nuclear weapons in case anyone here still swallows that BS). The Us and its much lackey-in-empire the UKs power is based soley on the fact that you can only buy and sell oil in those 2 cities, for Us Toilet paper of course.
So….will China have to be upgraded to the head of the axis-of-evil ahead of North Korea now? That would be awkward of course, b/c as we know, corporate amerika pulled up stakes and now makes all amerikas plastic salad shooters in well..China. Amerikans no longer no how to make shoddy, toxic, designed to break-goods at home, theyve ship all that to China. If the nations of the world getting screwed by the US\uk partnership in crime bolt to China, finally given an alternative, what will amerikas corporate leadership do?
A dilemma if there ever was one haha.
TIKIMAN on Thu, 19th Apr 2012 3:35 pm
If they use the YUAN for trading the dollar will collapse…
This will not be good…
James on Thu, 19th Apr 2012 7:50 pm
I say China go for it. But beware of using the dollar.
Plantagenet on Thu, 19th Apr 2012 9:27 pm
The Chinese are obviously ignoring Obama’s stupid claims that traders and speculators in oil futures are responsible for the high price of oil.
Its embarrassing when the communists running China exhibit a better understanding of capitalist principles like the law of supply and demand then the current president of the USA.