• 11 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 13 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 15 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 16 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 18 hours Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 19 hours Aramco Says No Plans To Shelve IPO
  • 3 days Trump Passes Iran Nuclear Deal Back to Congress
  • 3 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 4 days Renewable Energy Startup Powering Native American Protest Camp
  • 4 days Husky Energy Set To Restart Pipeline
  • 4 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 6 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 6 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 7 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 7 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 7 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 7 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 7 days Niger Delta State Looks To Break Free From Oil
  • 7 days Brazilian Conglomerate To Expand Into Renewables
  • 7 days Kurdish Independence Could Spark Civil War
  • 7 days Chevron, Total Waiting In The Wings As Shell Mulls Majnoon Exit
  • 8 days The Capital Of Coal Is Looking For Other Options
China Takes Aim At The Petrodollar

China Takes Aim At The Petrodollar

In a potentially disrupting move…

China Puts Shanghai Oil Futures Contract Launch On Hold

China trader

Faced with international investors’ concern over China’s potentially heavy interventions on money and commodity markets, Beijing has quietly postponed, probably by years, the launch of a new crude oil futures contract, Reuters reported on Friday, quoting five sources in the know.

China has had ambitions for years to create a new oil futures contract that would be traded on the Shanghai International Energy Exchange INE, but foreign investors have been recently spooked by Beijing’s policies for the yuan currency and capital outflows and last year’s intervention on the volatile commodity markets, according to Reuters sources.

China has been planning the launch of the new contract to add to the global benchmarks, the WTI and Brent, but faced with investor worries, INE has quietly put those plans on the back burner.

INE had been in contact with traders for most of last year, but then went silent at the end of 2016. The launch of the new futures contract is now being considered “off the table” for a few years, a manager at an international bank told Reuters.

In the middle of 2015, China was hoping that it could launch the new contract by the end of that year.

As this did not happen, the timeline was further pushed, and in March 2016 another delay, this time by government review of INE, postponed the launch of the contract to late 2016.

Related: Has OPEC Seriously Underestimated U.S. Shale Dynamics?

A few months later, officials told S&P Global Platts that the launch was unlikely to happen in 2016 because China wanted stricter regulations to prevent high volatility on the equity and steel markets.

Back then, an official told Platts:

“It is unlikely that the contract will be online this year. The contract is priced in yuan and it will be traded internationally. Any wild movements would damage the reputation of the currency, which is being promoted to be an international currency.”

Now it seems like international investors’ concerns have prevailed over the ambitions to launch oil futures contract in China.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News