Global oil markets

China is seeking to assert its growing influence on global oil markets with a yuan-denominated crude futures contract expected to be launched this year. At the same time, analysts warn that the second-largest oil consumer after the United States will struggle to compete with more established benchmarks such as London’s Brent North Sea crude and New York’s WTI. China’s consumption will exceed that of the United States by 2034, according to the US Energy Information Administration. The country produced about 4.6 million barrels per day (mbpd) of oil in 2014, while the country’s average net imports reached 6.1 mbpd. The influence of Asia, and China in particular, has been growing on international commodity markets in recent times. It is also consistent with China’s gradual moves towards greater internationalization of its currency. The Shanghai International Exchange is working on a final draft to be approved by the China Securities Regulatory Commission before a comprehensive mock trading exercise. Source: The Himalayan Times

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