China plans to launch Shanghai crude oil futures

According to Reuters, China is planning to launch its crude oil futures in Shanghai in the second half of 2017, which will enable the country to price crude in Asia and increase its revenues by participating in the oil futures trade that is led by global benchmarks, Nymex and Brent.

Shanghai’s International Energy Exchange (INE) was going to launch the futures contract in 2016 but the plans were shelved due to volatility in domestic stocks, which caused hesitance among regulators.

Although the exact date of the launch is unclear, it is likely to take place between July and October, the reports revealed.

Crude oil in Asia is currently priced against Dubai, Oman and Brent benchmarks.