Chinese oil futures become global benchmark

Chinese oil futures become a global benchmark

Attempt
China to enact its own
crude oil futures was first
I met with skepticism. but the leaders
of the oil industry say the growing
the economic impact of China
means that the appearance of a third
global benchmark inevitable.

This will allow Shanghai
International Energy Exchange
(Shanghai International Energy Exchange, or INE)
to secure a piece of
market futures contracts for oil
cost trillions of dollars, which would complicate the
Life colleagues from London (Brent)
and New York (WTI).

oil
Contracts denominated in yuan, early
or later appear. China will do,
they tried, but failed to make other
countries. Market experts say:
“The energy industry is today
staffed by Western players. But
the world does not stand still, change is coming
guard. China has become the world’s largest
oil trader, which means that
the price will be formed there, like
it or not. ”

Shanghai
Exchange is in the final stage
run oil futures. Maybe,
though, it will happen in October,
According to some sources, may
be delayed due to severe
turbulence in the market.

oil
futures will increase the role of the yuan in the international
monetary system and bring some
share of the national prestige of the country. it
It allows traders to perform well
Arbitration between major global
economic regions.

Asiatic
benchmark tried at one time to create
on the Dubai Mercantile Exchange, but there until
so far failed to attract sufficient
liquidity for dominance
in the region.

In
market participants, there are problems,
related to the large size of government
oil companies. Recent Activity
Chinese regulators affect markets
shares in the country and the renminbi quotes. By
According to experts, the market does not like
the idea that the regulator of the largest
oil importer in the world suspected
in the target price cuts.

China,
Naturally, faced with competitors:
first of all, with Singapore, which
also seeks to introduce futures
contracts for oil, and the Dubai Mercantile
exchange. In addition, it will be difficult to overcome
regional animosities. For example,
Japanese traders said: “We will
trade on the Tokyo Commodity Exchange.
We have no reason to go into
Shanghai”.

But
Many experts believe that the Chinese
oil futures will be one hundred percent
success, even if not immediately. “One after another,
oil giants will be tightened
on the market, and behind them will follow
and others. It takes time to
a foothold in the volatile markets and
go through the regulatory hurdles. ”

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