China: pricing influencer. File image/Pixabay.
China aims to launch a bonded low-sulfur bunker fuel oil contract that will allow foreign investors to participate in trading by the end of 2019, the Shanghai Futures Exchange (ShFE) has said.
"The contract will help expand China's pricing influence in [the] global bunker fuel oil market and help China to improve its maritime transportation capacity," Reuters reports quoting a statement from ShFe chairman Jiang Yan.
The statement went on: "Bunker fuel markets will see bigger opportunities and challenges in 2020.
"China may reverse the current situation of fully relying on imports on high-sulfur bunker fuel oil and become the world's biggest low-sulfur heavy bunker fuel oil supply center."