China’s SPEX to launch spot crude, oil products trading

Shanghai Petroleum Exchange Ltd. (SPEX), China’s first physical oil and petrochemical spot trading bourse, is set to launch spot trade of crude, zero pour gasoil and 93 RON gasoline. However, the launch date has yet to be finalized. Upon launch, it would be China’s first exchange to provide a platform for crude oil and oil products spot trading. Meanwhile, SPEX suspended physical fuel oil trading due to low trading volumes. The total traded volume on SPEX since November 8, 2006, the day of the trade’s launch, to April 17, 2009, its last trading day, was recorded at 1.29 million lots, or roughly 2,050 lots per day on average. Fuel oil physical trading on SPEX was started on a forward basis, with contracts’ delivery dates set in forward months. Media reports said that traders believe SPEX’s move is part of the preparation for its new trading platform for crude oil, gasoline and gasoil. (April 13, 2009)