Language - English
China's promotion of the construction of the crude oil futures market aims to provide enterprises with effective price risk management tools and provide risk barriers for their continued operations. In addition, although Europe and the United States have mature crude oil futures markets, their prices cannot objectively and comprehensively reflect the supply-demand relationship in the Asia-Pacific region. The launch of China's crude oil futures will help form a benchmark price system that reflects the supply and demand relationship in the oil market in China and the Asia-Pacific region, optimize the allocation of oil resources through the market, and serve the real economy. The construction of the crude oil futures market is one of the important practices in the opening up and internationalization of China's futures market.
China's promotion of the construction of the crude oil futures market aims to provide enterprises with effective price risk management tools and provide risk barriers for their continued operations. In addition, although Europe and the United States have mature crude oil futures markets, their prices cannot objectively and comprehensively reflect the supply-demand relationship in the Asia-Pacific region. The launch of China's crude oil futures will help form a benchmark price system that reflects the supply and demand relationship in the oil market in China and the Asia-Pacific region, optimize the allocation of oil resources through the market, and serve the real economy. The construction of the crude oil futures market is one of the important practices in the opening up and internationalization of China's futures market.
Pricing is a net price excluding tariffs and value-added tax, which is different from the current situation that domestic futures transaction prices are all tax-included prices, which facilitates direct comparison with tax-excluded prices in the international market and avoids the impact of tax policy changes on transaction prices.
Relying on bonded oil depots for physical delivery, the main consideration is that the price of bonded spot trade is calculated as a net price excluding tax. Bonded trade has fewer restrictions on participating entities, and bonded oil depots can be used to connect domestic and foreign crude oil markets. The bond is conducive to the participation of international crude oil spot and futures traders in trading and delivery.
Renminbi is used for pricing and settlement.
The reasons for choosing mid-quality sour crude oil as the delivery target: First, the resources of mid-quality sour crude oil are relatively abundant, and its production share accounts for about 44% of global output; second, the supply-demand relationship of mid-quality sour crude oil and light The quality and low-sulfur crude oil are not exactly the same, and the current international market still lacks an authoritative price benchmark for intermediate-sulfur crude oil; third, intermediate-sulfur crude oil is the main variety of crude oil imported by China and neighboring countries, forming intermediate-sulfur crude oil. The benchmark price of crude oil is conducive to promoting the development of international crude oil trade in the Asia-Pacific region.
| Product | Medium Sour Crude Oil |
|---|---|
| Contract Size | 1000 barrels per lot |
| Price Quotation | (RMB) Yuan per barrel (no tax or duty included in the quotation) |
| Minimum Price Fluctuation | 0.1 Yuan / barrel |
| Daily Price Limits | ±4% from the settlement price of the previous trading day |
| Listed Contracts | Monthly contracts of recent twelve (12) consecutive months followed by eight (8) quarterly contracts. |
| Trading Hours | 9:00-11:30 a.m., 1:30-3:00 p.m. (the Beijing Time), and other trading hours as prescribed by the Exchange |
| Last Trading Day | The last trading day of the month prior to the delivery month; The Shanghai International Energy Exchange is entitled to adjust the last trading day in accordance with the national holidays. |
| Delivery Period | Five (5) consecutive trading days after the last trading day. |
| Grades and Quality Specifications | Medium sour crude oil with the quality specifications of API 32.0 degrees and sulfur content 1.5% by weight The deliverable grades and the price differentials willbe stipulated separately by the Shanghai International Energy Exchange. |
| Delivery Venues | Delivery Storage Facilities designated by the Shanghai International Energy Exchange |
| Minimum Trading Margin | 5% of contract value |
| Settlement Type | Physical delivery |
| Product Symbol | SC |
| Listing Exchange | Shanghai International Energy Exchange |
The Energy Center formulates different trading margin collection standards according to the different stages of the futures contract's listing operation (that is, from the date when the futures contract is newly listed to the last trading day). At the same time, the Energy Center can adjust the trading margin standards in the form of announcements based on market risk conditions. The management of the settlement reserve shall be governed by the relevant provisions of the "Shanghai International Energy Exchange Settlement Rules".
The price limit of the Energy Center crude oil futures contract is set at no more than 4% of the settlement price of the previous trading day.
The Energy Center may adjust the price limit in the form of announcements based on market risk conditions.
There is generally no price limit in the world, or the price limit is very large and used in conjunction with the fuse mechanism.
The day’s settlement price of my country’s crude oil futures contracts is defined as the weighted average price of the day’s trading volume, and the delivery settlement price is the arithmetic average price of the settlement prices of the last five trading days with transactions.
Crude oil futures transactions are priced and settled in RMB. Foreign traders and overseas brokerage institutions can use Renminbi, or directly use USD as margin, but the USD margin can only be used for settlement.
The settlement and purchase of foreign exchange shall be based on the actual results of crude oil futures trading by overseas traders and overseas brokerage institutions, and only involve the settlement of futures trading profits and losses, payment of handling fees, delivery of goods, or recovery of settlement currency funds related to crude oil futures trading. .
Overseas traders and overseas brokerage institutions may import RMB or USD funds from overseas to participate in crude oil futures transactions. Such funds shall be deposited in special accounts and closed management in China, and shall not be used for other purposes other than domestic specific types of futures transactions. The transfer of funds shall comply with the scope of account income and expenditure stipulated in the policy.