Asia/Pacific News
Shanghai Bunker Fuel Futures Benchmark Sees First Use in International Trade
A bunker fuel futures contract launched last year by Shangai International Energy Exchange (INE) has seen its first use in International trade.
The contract was said to have been used by Freepoint Commodities Singapore Pte Ltd in deals signed with Chimbusco International Petroleum (Singapore) Pte. Ltd., China Merchants Energy Trading (Singapore) Pte. Ltd., and COFCO International Freight SA.
“Market participants believe that these trade contracts fully prove the growing influence of China’s LSFO futures on bunker pricing in the Asia-Pacific and global markets.” INE said.
The contract was launched last June as the second oil contract - after Shanghai crude - open to foreign investment.
At the time, the contract was seen as having potential to become an Asian benchmark for bunker fuel as well has helping to advance Zhoushan's ambitions of becoming a regional bunker hub.
