Futures in NY were up 0.1 percent after closing 0.5 percent lower on Monday.
China hopes it can do better: with state-controlled oil majors like PetroChina and Sinopec expected to provide liquidity, analysts said the contract has a chance of succeeding even if it faces short-term caution. C-OUT-T-EIA U.S. oil output has already jumped by a quarter since mid-2016 to 10.4 million barrels per day (bpd).
Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore said there was "considerable resistance" as current or higher prices opened the possibility that even more United States shale producers could come back online. "Uncertainties still linger and that will pressure prices from going up further".
Over the first 24 hours of trading, Shanghai's spot crude volumes made up 5 percent of the global market, compared with 23 percent for Brent crude futures and 72 percent for the U.S. West Texas Intermediate contract. In recent years, it repeatedly delayed its new contract amid turmoil in equities and financial markets. Total volume traded was about 31% below the 100-day average.
Gene McGillian, manager of market research at Tradition Energy, offered a slightly different take on the numbers: "The [oil] market is pulling back after pushing strongly high last week; I think the $70 level in Brent, $67 for WTI. start to trigger worries of increased USA production levels".
"If the demand for (yuan contracts) came at the expense of the USA dollar, there is always a chance, however slim, that the Chinese yuan could displace the U.S. dollar as the main petro-currency". The global benchmark traded at a $4.56 premium to WTI.Читайте также: No charges in police fatal shooting of black man
Citing Li Qiang, director of the research center under the Xinhu Futures, the media outlet suggested that the launch of China's own oil futures could be seen as Beijing's attempt to open the country's commodity market to foreign investors.
Yuan-denominated trading and a blend of new rules and regulatory burdens will also likely hamper initial take-up on the Shanghai International Energy Exchange (INE), executives at a dozen banks and brokers and experts involved in the launch told Reuters. Yet a small estimated increase in US inventories is keeping a lid on oil-price gains.
We also don't know if the behind-the-scene talks between the USA and China will prevent a looming trade war.
At the same time, recent "strength in oil has come on the back of strong supply and demand fundamentals as evidenced by recent US data which shows total USA oil stocks more or less flat over the past four weeks", according to analysis at consultancy JBC Energy.
The combined increase was the largest since the end of October and reversed a draw of 73 million barrels over the two previous weeks, according to records published by regulators and exchanges.
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