China set to launch oil benchmark after years of delays

After years of delays, the long-awaited crude futures contract will be launched soon on China’s Shanghai International Energy Exchange (INE). Although there is no set date, the INE and also trading participants now say a launch this year is almost certain.

Key Points via Reuters:

“China has opened more than 6,000 trading accounts, with three-quarters coming from individual traders - as it pushes ahead with plans to compete with global pricing benchmarks.

China's oil majors and about 150 brokerages have also registered, but the strong interest by 'mom-and-pop' investors looks set to mark out China's crude futures from western counterparts, which are dominated by institutional investors.

Shanghai's crude futures are aimed at giving China more clout in pricing crude in Asia and a share of the trillions of dollars in oil futures trade.”