“The contract will help expand China’s pricing influence in global bunker fuel oil market and help China to improve its maritime transportation capacity,” Jiang Yan, chairman of Shanghai Futures Exchanges said.
“Bunker fuel markets will see bigger opportunities and challenges in 2020. China may reverse the current situation of fully relying on imports on high-sulphur bunker fuel oil and become the world’s biggest low-sulphur heavy bunker fuel oil supply centre,” Jiang added.
The low-sulphur fuel oil futures would be China’s second bonded oil futures contract. The first was crude oil futures on the Shanghai International Energy Exchange, a subsidiary of Shanghai Futures Exchanges.
Last month, China’s largest oil refining company Sinopec announced plans for low-sulphur marine fuel development and will have a production capacity of 10m tons low-sulphur marine fuel by 2020.