February 9, 2018 / 10:22 AM / 8 months ago

UPDATE 1-Shanghai exchange plans China's first crude oil futures

 (Adds CSRC confirmation of launch date; details of deliverable crudes)
    Feb 9 (Reuters) - China plans to launch its long-awaited crude oil futures
contract on March 26, the China Securities Regulatory Commission said on Friday,
a move that will potentially shake up pricing of the world's largest commodity
market.
    It will compete with two other crude derivatives, U.S. West Texas
Intermediate (WTI) and London's Brent, which are traded mainly on
the New York Mercantile Exchange (NYMEX) owned by CME Group and the
Intercontinental Exchange.
    Below are the details of the Shanghai International Energy Exchange crude
oil contract as published on the SHFE and INE websites.
    here
    here
 
        
 Deliverable crudes          Dubai (0), Upper Zakum (0), Oman (0),
 (with premiums/discounts    Qatar Marine (0), Masila (+5 yuan per
 to INE price)               barrel), Basrah Light (-5 yuan per
                             barrel), Shengli (-5 yuan per barrel)  
 Unit                        1,000 barrels per lot
 Currency/unit               Yuan per barrel (excludes tax)
 Minimal change              CNY 0.10 per barrel
 Price limits                Not more than ±4 percent from previous
                             day's settlement
 Contract delivery           Monthly contracts for the first twelve
                             months out. Contracts for March, June,
                             September and December for the following
                             two years.
 Trading period              9am-11.30am; 1.30pm-3pm
 Contract expiry             Contract expires on the last trading day
                             of the delivery month. The INE reserves
                             the right to adjust the last trading day
                             according to China's public holiday.
 Delivery date               Five days after contract expiry
 Crude oil specification     Medium-sour crude with an API gravity of
                             32 degrees and 1.5 percent sulphur. The
                             INE will specify separately the crude
                             grades that can be delivered and their
                             respective premiums.
 Delivery location           Bonded warehouses as designated by the
                             INE
 Minimum transaction margin  5 percent of contract value
 Delivery method             Physical delivery
 Transaction code            SC                                      
 Listed unit                 Shanghai International Energy Exchange
                             (INE) 
    

 (Reporting by Florence Tan in SINGAPORE and Chen Aizhu in BEIJING; editing by
Richard Pullin)
  
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