China's Crude Oil Futures Trade Tops 200 Billion Yuan

China's Crude Oil Futures Trade Tops 200 Billion Yuan

Liao Shumin

Date: Thu, 04/12/2018 - 18:46 / source:Yicai
China's Crude Oil Futures Trade Tops 200 Billion Yuan
China's Crude Oil Futures Trade Tops 200 Billion Yuan

(Yicai Global) April 12 -- China's crude oil futures have gotten off to a steady start since they hit the market on March 26, with the total trade reaching CNY225 billion (USD35.8), or 544,500 100-share contract units as of yesterday in gradually rising market activity.

Since their market advent, China's crude oil futures have logged considerable positions and trading volume, the Shanghai International Energy Exchange (INE) said yesterday. China's crude oil futures have traded more than four times as much as the Oman crude oil futures contract of Dubai Mercantile Exchange in recent days.

From the price trend, SC1809 (Shanghai Crude, delivered in September 2018), the main crude oil futures contract of Shanghai International Energy Exchange (INE) opened high but closed low in the first week, which sent off slight temblors. It closed at CNY420.3 per barrel on March 30, a cumulative rise of 1.03 percent compared with the benchmark price of CNY416 per barrel on the first day, with a cumulative drop of 4.48 percent from the opening price of CNY440 per barrel on the first day.

INE crude oil futures have strong linkage with Brent and West Texas  Intermediate (WTI) crude oil futures, with unilateral trend and forward structure basically complementing each other, and pricing reasonable and effective, said An Jing, a crude oil researcher at Shanghai-based asset-management and brokerage firm China Merchants Futures Co.

The trading trend of crude oil futures is one of increasing activity. The trading volume rose significantly in the following three days as compared with the first two days after market opening. Positions had doubled over against the first day after five days. The trading activity and expansion of INE crude oil futures in the first week generally give grounds for optimism, market participants believe, and the proportion of transactions performed by spot companies is increasing.

China’s crude oil futures will gradually execute their expected function of providing Chinese companies with risk management tools suitable for the domestic market and promoting the sound development of China's oil products and financial markets, the Petroleum Business News cited market players as saying.

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Keywords: Crude Oil Futures