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The Shanghai Futures Exchange will roll out long-awaited fuel oil futures on August 25, offering a hedging tool for firms in the world's second-largest oil consumer.
The Shanghai Futures Exchange will roll out long-awaited fuel oil futures on August 25, offering a hedging tool for firms in the world's second-largest oil consumer.
An exchange official told reporters that China needs the derivatives to cope with greater competition as it opens the closely guarded oil sector to foreign players such as Royal Dutch/Shell Group.
Regulators had shut down fuel oil futures in 1994, along with dozens of others nationwide, due to rife speculation.
The revival of fuel oil futures, China's most liberalized oil product, also paves the way for the launch of crude oil contracts. China ranks second, behind the US, in terms of crude oil consumption, importing 61 million tonnes in the first half of this year.
Analysts believe the government is testing waters and gaining experience so that it can better prepare itself for crude oil futures.
(Shanghai Daily August 5, 2004)
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