FACTBOX-Shanghai's crude futures contract

SINGAPORE/SHANGHAI Thu Nov 14, 2013 2:29am IST

SINGAPORE/SHANGHAI Nov 14 (Reuters) - The Shanghai Futures Exchange (SHFE) plans to launch an oil futures contract that will compete to become the benchmark price for the 30 million barrels of crude consumed in Asia every day.

For a related story:

Here are details of the planned contract from industry officials with direct knowledge of the plan. The plans are subject to change and are awaiting a greenlight from the central government.

Venue: Shanghai Futures Exchange

Contract unit: 100 barrels; versus 1,000 barrels for global benchmarks WTI and Brent as China aims to also attract retailers' interest.

Crude stream: medium sour oil with an API gravity of 30-34 and a maximum 2 percent sulphur content. The oil matches the grades bought most by Chinese, Japanese and South Korean refiners. Candidates include Oman, Dubai, Basra Light, Masila, Upper Zakum, Qatar Marine. China's onshore crude Shengli, also a medium, sour grade may be added, though not for delivery.

Contract durations: monthly contracts for the first twelve months out. Contracts for March, June, September and December for the following two years.

Delivery points: Bonded storage facilities in Dalian, in northeast China and in Zhoushan and Zhenhai, both near Shanghai.

Crude delivered against the contract could actually be shipped to China and its north Asian neighbours, in 600,000-barrel cargoes.

Currency: Under the draft contract framework, the contract would be priced in both the yuan and the U.S. dollar, and will be able to be traded in bonded warehouses. (Reporting by Florence Tan, Fayen Wong and Chen Aizhu; Editing by Simon Webb)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Quarterly Results

Quarterly Results

HDFC Bank net profit up 20 percent, lags estimates.  Full Article 

China Economy

China Economy

China's growth slowest since global crisis, annual target at risk  Full Article 

Coal Reforms

Coal Reforms

Factbox - India pushes ahead with coal reforms  Full Article 

Apple Result

Apple Result

Apple's iPhone sales beat Street but iPad volumes slide  Full Article 

Airport Accident

Airport Accident

Total CEO de Margerie killed in Moscow plane accident - airport spokeswoman.  Full Article 

Nadella's Paycheck

Nadella's Paycheck

New Microsoft CEO Nadella's pay tops $80 mln with big stock awards.  Full Article 

Deregulation Impact

Deregulation Impact

Private fuel retailers to dip toe, not dive back, into India  Full Article 

JLR China

JLR China

JLR sees 20 percent growth in China sales this year - exec  Full Article 

An RBI First

An RBI First

RBI releases minutes of financial stability council's Aug meet  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage