Glencore is first to trade on new Shanghai oil futures exchange
Beijing — Shanghai crude oil futures launched on Monday with mom-and-pop and institutional investors fuelling much higher turnover than many expected for China’s new commodity benchmark. The exchange is aimed at dominating the Asian oil market. In a sign that the contract has lured overseas interest, global commodity trader and miner Glencore made the first trade, although a blend of regulatory hurdles and unfamiliar rules may stymie broader take-up in the near term. The launch of China’s yuan-denominated oil futures — its first commodity derivative to be open to foreign investors — marked the culmination of a decade-long push by the Shanghai Futures Exchange to give the world’s largest energy consumer more power in pricing crude sold to Asia. Almost 15.4-million barrels of Shanghai’s most-active September contract changed hands in the two-and-a-half-hour morning session, which ended at 3.30am GMT. That initially eclipsed volumes traded in the Brent May contract, before Europe’s ben...
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