Geopolitical Risk Drives Oil Prices Higher
The global benchmark traded at a $4.72 premium to WTI crude. United States crude benchmark West Texas Intermediate (WTI) reached the highest level in three years at $66.55 per barrel, before retreating to $65.53.
The yuan-denominated futures for September settlement were at 433.80 yuan/bbl ($69.16) on the Shanghai International Energy Exchange.
Allowing foreign investors to trade the futures directly is a first for China's commodity markets.
Beijing has set a daily foreign-exchange quota of US$5 billion and is likely to raise the cap in the future to attract more overseas traders to invest in the contracts. "It's all very different".
Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA in Singapore said there was "considerable resistance" as current or higher prices opened the possibility that even more US shale producers could come back online. Ten foreign intermediaries have registered, including J.P.Morgan, Bands Financial, Straits Financial Services and other Hong Kong based affliates of domestic brokerages.
"It is more of a game changer for the US".
The listed futures are contracts to be delivered between September 2018 and March 2019.
Foxconn Unit To Buy Belkin Intl. For $866 Mln
Meanwhile, Foxconn is investing heavily in Wisconsin, where it plans to build a $10 billion manufacturing facility. The two companies announced the signing of a definitive agreement today.
Eagles get set in London for Serbia friendly
The Super Eagles have begun preparations in earnest for Tuesday's global friendly with the Serbia National Team. The Super Eagles' friendly game against Serbia will be played on Tuesday at Barnet FC stadium, Canons Park.
Easter weather for Sussex
FIRST ALERT FOR HEAVIER RAIN/STORMS BY THURSDAY: The chance for rain will be on the increase beginning late on Wednesday . This unsettled weather pattern with cooler temperatures could last all the way through the early part of next week.
Chinese trading habits may also be a shock to foreign users, they said.
That concern did not scare off global commodity trading giant Glencore, which according to Chinese brokerage Xinhu Futures, carried out the first trade on the Shanghai crude oil futures. That could complicate efforts to trade spreads between Brent, WTI and Shanghai. China is the world's biggest oil consumer, with eyes on rival benchmarks Brent and WTI as well as the USA currency.
China's steel industry on Tuesday urged Beijing to ensure any increase in steel products seeking a market in the wake of US tariffs did not affect its domestic industry, following the announcement of a European Union import probe. "I still think there is a general reluctance from global investors to trade Chinese-based contracts".
Crude oil futures slipped on Monday as investors cashed in some profits from last week's rally but concerns about Saudi-Iran tensions kept losses in check.
Previous attempts at an Asia benchmark have foundered.
But analysts said the long-delayed Shanghai-traded futures are unlikely to challenge the primacy of NY and London-based futures any time soon due to Chinese capital controls and the entrenched position of the dollar-denominated contracts.
China hopes it can do better: with state-controlled oil majors like PetroChina and Sinopec expected to provide liquidity, analysts said the contract has a chance of succeeding even if it faces short-term caution.
Recommended News
-
27 March 2018Pacers react to clinching playoff spot, proving doubters wrong
The fourth quarter was not pretty for IN as the allowed Miami to get back IN the game eventually taking the lead. Thaddeus Young contributed 22 points and nine rebounds, and Bojan Bogdanovic added 18 points for the Pacers .
27 March 2018Nokia 1 with Android Go Edition for Rs 5499 launched in India
Connectivity options include, Wi-Fi 802.11 b/g/n, GPS/AGPS, Bluetooth 4.2, a micro USB 2.0 port and a 3.5mm headphone jack. It is backed up a 2150mAh battery and is rated to deliver up to 9 hours of talk time and up to 15 days of standby time.
27 March 2018England legend Ian Botham has doubts over Steve Smith's ball-tampering claim
The maximum penalty available to the code of conduct commissioner is a life ban from the sport, added the report. The incident has been met with astonishment in Australia, with the protagonists. -
27 March 2018Cause of blaze at Siberian shopping mall still unknown
Deputy governor Chernov was quoted as saying the fire probably began in the children's trampoline room. One woman, Ekaterina said: "I was with my husband on the third floor in a furniture shop".
27 March 2018Karnataka Assembly polls on May 12, results on May 15
Polling and counting of votes for Karnataka Assembly elections are likely to be held by the end of April or the first week of May. The Assembly Elections will see a three-cornered contest between the Congress, the BJP and the JD (S).
27 March 2018Mamata leaves for Delhi to meet opposition leaders
NCP leader Praful Patel had met Banerjee earlier this month here and invited her to attend the meet. Congress sources, however, said that Mr Gandhi might just "walk in" and join the discussions. -
27 March 2018Honda Insight debuts with 151 horsepower and 55 mpg
By storing the lithium-ion battery pack under the rear seats, the designers have been able to fit a folding 60/40 rear bench. Standard items across the board are the full LED headlights, lower-mounted LED DRLs, LED taillights and heated side mirrors.
27 March 2018Sierra Leone opposition warns against delaying vote
APC's Samura Kamara will face off with the main opposition Sierra Leone People's Party (SLPP)'s Julius Maada Bio in the elections.
27 March 2018Spain arrests Ukrainian cyber criminal 'mastermind'
Europol suggests other members have been arrested, including coders, mule networks, money launderers. This provided them with the knowledge they needed to cash out the money. -
27 March 2018India says China promises to address trade deficit concerns
On the revival of the India, US, Japan and Australia quadrilateral or "Quad" dialogue, he stressed this was not an alliance. Both the sides should address each other's concerns, he said. "There is no such thing as changing status quo".
27 March 2018Deadly fire kills at least 37 in Russian Federation mall
The Prosecutor General's Office on Monday ordered all shopping malls in Russian Federation to be checked for fire safety features. Yevgeny Dedyukhin, deputy head of the Kemerovo region emergency department, said the area of the fire was about 1,500 sq m.
27 March 2018White House Won't Say Whether Trump Watched Stormy Daniels' '60 Minutes' Interview
When asked to clarify if that meant Trump didn't believe the claim that Daniels was threatened, Shah replied, "No, he doesn't". Trump said she is "focused on being a mom and is quite enjoying spring break at Mar-a-Lago while working on future projects".
