APPEC: International Energy Exchange CEO sees role of Shanghai crude contract changing

S&P Global Platts | Sep 14, 2020 at 6:57 AM
  • China’s Shanghai Crude futures contract is changing from reflecting a CIF China crude price to becoming more of a “distribution center” price as the barrels delivered into the contract were increasingly sold on and shipped overseas, Wang Fenghai, CEO of the International Energy Exchange.
  • Over full year 2019, 3.416 million barrels of crude delivered for the contract were sold to other countries — 72% or 2.465 million barrels re-exported to South Korea, and 951,000 barrels to Myanmar to supply PetroChina’s Yunnan Petrochemical refinery in southwest China via pipeline.
  • In the first half of the year, the average daily trading volume of the SC contract was 170 million barrels, up 3% year on year, and average daily open interest 110 million barrels, up 286%.