Global commodity trader and miner Glencore completed the first deal on Shanghai’s new crude oil futures exchange when it opened on Monday. The Shanghai Futures Exchange said that China National Petroleum Corp (CNPC) had agreed to buy a 1 million barrels per day US-based Freepoint led early trading for the medium-sour crude contract, indicating enthusiasm from overseas participants. The authorities hope the launch of the new crude contract will give China more influence in pricing crude for the Asian market.
Global commodity trader and miner Glencore completed the first deal on Shanghai’s new crude oil futures exchange when it opened on Monday. While many expected Chinese state oil majors to be the first to trade, foreign investors such as Glencore, commodity trader Trafigura and US-based Freepoint led early trading for the medium-sour crude contract, indicating enthusiasm from overseas participants. The authorities hope the launch of the new crude contract will give China more influence in pricing crude for the Asian market.