After being in the works for well over half a decade, China is finally launching its own crude futures contract next week, with the ultimate goal of creating a yuan-denominated global crude benchmark. The contract will comprise of seven grades that can be accepted for delivery: Dubai Fateh, Upper Zakum, Oman Export, Masila, Qatar Marine, Shengli and Basrah Light. The most focus will be on Basrah Light, given it is the most abundant of the grades that is accepted for delivery under the contract terms (Oman Export volume is mostly committed under term contracts). According to our sources, we believe that a significant proportion of contracts will be held for physical delivery. (We’ve published a report on the subject, you can access it here ). Of the seven grades accepted for delivery, only five of them were discharged in China last year – there was a complete absence of […]