China launches RMB-denominated futures for crude oil

Beijing. February 12. Silkroadnews - China launches RMB-denominated futures for crude oil, the Global Times reported.
“China will launch a long-awaited crude oil futures contract on March 26, a move that Chinese analysts hoped might eventually see the formation of a globally influential crude futures market,” the report said.
Futures will be traded in lots of 1,000 barrels and the deals will be made in Chinese yuan.
Data released by the US Energy Information Administration on February 5 showed, in 2017 China surpassed the United States and became the world’s number one importer of crude oil. Specifically, China’s import per day reached 8.4 million barrels in 2017 compared to 7.9 million barrels imported by the United States.
According to the analysts’ forecasts, the country’s dependence on imported oil will grow from 67% in 2017 to 80% in the near future.
This is not the first attempt by the China Securities Regulatory Commission to launch such futures at the Shanghai International Energy Exchange. The oil exchange, established in the early 1990s, was soon closed due to what analysts dub “reform and market factors”, the report said. China’s demand for crude oil allows the nation to build an influential oil futures market, though this will take time and some efforts.