(Yicai Global) Dec. 8 -- A unit under Shanghai Futures Exchange will hold market-wide training simulations tomorrow and on Dec. 10 in preparation for the formal inauguration of the crude oil futures contract, Sina reported yesterday.
The International Energy Exchange conducted four mock trading exercises for crude futures in June and July. It will look to roll out the contracts by the end of this year, an official at INE said after the last session.
Oil consumption in the Asia Pacific region as a percentage of the global total has continued to rise in recent years, and the region has become the main growth driver for international petroleum use. Crude futures will serve as a barometer for supply, demand and price fluctuations in China and the Asia Pacific oil markets, similar to the West Texas Intermediate and Brent indicators in the US and Europe, an energy futures manager at Shanghai Futures Exchange said.
The Chinese government plans to roll out yuan-denominated oil futures that can be converted to gold on a domestic exchange by the end of the year. If this becomes a reality, the US dollar will no longer be the only common currency for settling international oil trades, Russia's Morning News previously reported.
Gold-backed yuan-denominated oil futures will be attractive to investors and oil-producing nations, especially those in conflict with the US, the report added.