On May 29th, the 16th session of The Shanghai Derivatives Market Forum Energy Sub-forum, which is co-organized by the Shanghai Futures Exchange (hereinafter referred to as the SHFE), Shanghai International Energy Exchange Center (hereinafter referred to as the INE), the International Energy Forum, the China Petroleum and Chemical Industry Federation, and the Bank of Communications. This Sub-Forum has received extensive attention from relevant domestic and overseas industries.
It is understood that this sub-forum not only has representatives from domestic energy organizations such as Sinopec, CNOOC, and China Gas, but also attracted Alejandro Barbajosa, vice president of crude oil and liquefied petroleum gas in the Middle East and Asia-Pacific; Christopher Fix , director of CME Group and experts from the board of directors of the Dubai Commodity Exchange; Kamel Ben Naceur, who is the CEO of Nomadia Consulting, and other experts from the international energy or derivatives market participated in and delivered speeches. It can be said that this is the energy derivative conference with largest scale and largest number of participants in overseas institutions hosted by the SHFE and the INE.
Impacts of Demand Rising China's Prices Begin to Voice
As we all know, energy is an important material basis for social development and one of the main driving forces of the economy. As the largest economy in the world except the United States, in recent years, with the rapid development of China's economy, China's energy consumption is increasing day by day, and China's energy import dependence is also increasing year by year.
Relevant data show that in 2018, China has surpassed Japan to become the world's largest natural gas importer. At the same time, China's dependence on crude oil and natural gas has risen to about 71% and 43% respectively.
However, Alejandro Barbajosa said that China's direct imports of oil and gas from the United States have decreased significantly in recent years as trade frictions between China and the United States have intensified. Meanwhile, Middle Eastern oil-producing countries are turning their attention to the Chinese market in the hope of gaining higher consumption in China. "In fact, the latest data show that China's crude oil imports have shifted to the Middle East." Because China has a huge demand for crude oil and is an important potential customer that Middle-East oil-producing countries hope to win, "China has acquired the ability to influence prices in the Middle-East crude oil market to a certain extent".
In addition, in April this year, Emirates Chief Sheikh Mohammed and President Xi Jinping announced that the United Arab Emirates and China had reached an agreement worth $3.4 billion, including major infrastructure projects. To this end, Christopher Fix believes that the ties between the Middle East and China will be further deepened. He said recently that foreign media often mentioned the contents of China's "one belt and one road", almost every day, which had never happened in the past year. In his view, this represents the high attention of the market to this project and the rapid progress of the project itself. Considering the region and impact of the project, he believes that this will further promote the formation of energy prices based on regional products and trade flows.
It is understood that on March 26, 2018, Shanghai International Energy Exchange Center was listed and traded in order to objectively and comprehensively reflect the supply-demand relationship between China and the Asia-Pacific region and make up for the gap in the existing international crude oil pricing system. After more than one year's development, overall trading is smooth, settlement is smooth, delivery is smooth, supervision is strict, risk management is in place, and public opinion is positive. At the same time, its pricing ability also appears. At present, China's crude oil futures have become the third largest crude oil futures market in the world. Its price is highly related to the internationally recognized Brent and WTI prices. It has been used as a spot trade pricing benchmark by many large oil-related enterprises at home and abroad. It has been awarded the Best New Listed Derivatives Contract Award in Asia in 2018 by American Futures Options World magazine.
At present, with the increasing uncertainty of macroeconomic cycle, geopolitical risk and environmental factors for oil supply and energy demand, INE crude oil futures not only provides an important new anchor for the market, but also provides risk management tools for relevant enterprises in the rapidly changing global policy and market environment.
Compared with the international mature futures market, there is still a big gap in the coverage of the industrial chain and product supply in China, and there are still some deficiencies compared with the huge hedging demand of the oil and gas industry. But over the past year, the last period continued to promote institutional innovation. After introducing the crude oil futures market maker system, the crude oil futures price index was also issued.
It is understood that in the next step, the exchange will bid on the mature international market, continuously optimize the existing rules and regulations, including the investor appropriateness system, launch settlement price trading (TAS), issue reference prices for each closing session, study the expansion of margin categories, increase the number of deliverable oils in time, etc. And under the premise of risk control, further improve the transaction convenience, and effectively reduce the cost of investors' participation.
In addition, according to Jiang Yan, chairman of the Board of Directors of the SHFE, in the future, the exchange will accelerate the listing of crude oil options, study and promote the trading of crude oil futures warehouse receipts, and continue to refine existing varieties around the exchange's "one main two wings" development strategy.
据了解，本次分论坛不仅有多位来自中石化、中海油、中燃气等国内能源机构的代表参加，更吸引到了阿格斯中东及亚太原油和液化石油气副总裁Alejandro Barbajosa，芝商所集团董事总经理、迪拜商品交易所董事会成员Christopher Fix及Nomadia咨询首席执行官Kamel Ben Naceur等来自国际能源或衍生品市场的专家参与并发表了相关演讲。可以说，这是迄今为止上期所、能源交易中心主办的规模最大、境外机构参与者人数最多的能源衍生品大会。