{"id":2243,"date":"2018-11-19T23:16:27","date_gmt":"2018-11-19T23:16:27","guid":{"rendered":"https:\/\/www.financeadvisoryexpert.com\/?p=2243"},"modified":"2018-11-19T23:17:13","modified_gmt":"2018-11-19T23:17:13","slug":"china-is-ready-to-shake-up-global-crude-oil-futures-markets","status":"publish","type":"post","link":"https:\/\/www.financeadvisoryexpert.com\/en_US\/2018\/11\/19\/china-is-ready-to-shake-up-global-crude-oil-futures-markets\/","title":{"rendered":"China is Ready to Shake-up Global Crude Oil Futures Markets"},"content":{"rendered":"<p>China finally launched its long-awaited <strong>crude oil derivative<\/strong> <strong>products<\/strong> on March 26, 2018 local time, when <strong>crude oil futures contracts<\/strong> began trading on the <a href=\"http:\/\/www.ine.cn\/en\/about\/simintro\/\" target=\"_blank\" rel=\"noopener\"><em>Shanghai International Energy Exchange<\/em><\/a><em> (INE)<\/em>. Futures for September settlement\u00a0<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-03-26\/china-s-first-ever-yuan-oil-futures-begin-trading-in-shanghai\" target=\"_blank\" rel=\"noopener\">opened<\/a>\u00a0at RMB440 a barrel, up from a reference price of RMB416. China, the world\u2019s biggest oil buyer, is offering trading of RMB-denominated crude oil futures, meaning that for the first time non-Chinese residents can trade in Chinese commodity markets. Liquidity was strong on the launch day, with 40,656 contracts worth around RMB17.6 billion ($2.8 billion) filtering through the system, according to INE&#8217;s figures. The most active September contract settled at RMB429.9 a barrel, after fluctuating between RMB426.3\/barrel and RMB447.1\/barrel during the trading session.<\/p>\n<p>Currently, crude oil futures contracts are primarily based on the U.S. dollar. The introduction of the RMB-denominated crude oil futures contracts would promote the use of China\u2019s currency in global exchanges, helping China to realize one of its key long-term strategic objectives \u2013 internationalization of RMB. <a id=\"post-2243-OLE_LINK5\"><\/a><a id=\"post-2243-OLE_LINK6\"><\/a><a id=\"post-2243-OLE_LINK7\"><\/a>China would benefit from having benchmarks that reflect the grades of oil that are generally consumed by local refineries that are different from those underlying Western contracts.<\/p>\n<p><a id=\"post-2243-OLE_LINK8\"><\/a><a id=\"post-2243-OLE_LINK9\"><\/a> Over the past decade, apparently, China has had a major influence in the global crude oil market due to its massive consumption of the commodity. In 2017, China surpassed the U.S. as the world\u2019s biggest crude oil importer by taking in over 8 million barrels a day.<\/p>\n<p>China is now\u00a0making an attempt to\u00a0exert more influence over crude oil derivative markets, aiming to\u00a0set up\u00a0the first Asian standards for oil deals.<\/p>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>China finally launched its long-awaited <strong>crude oil derivative<\/strong> <strong>products<\/strong> on March 26, 2018 local time, when <strong>crude oil futures contracts<\/strong> began trading on the <a href=\"http:\/\/www.ine.cn\/en\/about\/simintro\/...\n<\/p>\n","protected":false},"author":3,"featured_media":2244,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[61,64],"tags":[],"_links":{"self":[{"href":"https:\/\/www.financeadvisoryexpert.com\/en_US\/wp-json\/wp\/v2\/posts\/2243"}],"collection":[{"href":"https:\/\/www.financeadvisoryexpert.com\/en_US\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.financeadvisoryexpert.com\/en_US\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.financeadvisoryexpert.com\/en_US\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.financeadvisoryexpert.com\/en_US\/wp-json\/wp\/v2\/comments?post=2243"}],"version-history":[{"count":3,"href":"https:\/\/www.financeadvisoryexpert.com\/en_US\/wp-json\/wp\/v2\/posts\/2243\/revisions"}],"predecessor-version":[{"id":2247,"href":"https:\/\/www.financeadvisoryexpert.com\/en_US\/wp-json\/wp\/v2\/posts\/2243\/revisions\/2247"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.financeadvisoryexpert.com\/en_US\/wp-json\/wp\/v2\/media\/2244"}],"wp:attachment":[{"href":"https:\/\/www.financeadvisoryexpert.com\/en_US\/wp-json\/wp\/v2\/media?parent=2243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.financeadvisoryexpert.com\/en_US\/wp-json\/wp\/v2\/categories?post=2243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.financeadvisoryexpert.com\/en_US\/wp-json\/wp\/v2\/tags?post=2243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}