Two of the world’s biggest oil traders gave China’s crude futures contract a go on its long-anticipated trading debut.Commodity giants Glencore Plc and Trafigura Group were among foreign participants as the yuan-denominated futures started on the Shanghai International Energy Exchange Monday. After an initial surge in volume that outpaced overnight transactions in global benchmark Brent crude in London, trading tapered off toward the end of the session and the contract closed at 429.9 yuan a barrel ($68.22).
In a first for Chinese commodities, the futures are open to foreign participation, which is seen as critical for the long-term success of the contract. The world’s biggest oil buyer wants to challenge the dominance of Brent and New York’s West Texas Intermediate as global benchmarks and promote the use of the yuan in international trade, a key goal for Asia’s biggest economy.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.