China: Beijing Petroleum Exchange to start spot trading of petroleum products in near term

Chemical News: China: Beijing Petroleum Exchange to start spot trading of petroleum products in near term

https://www.chemnet.com Aug 03,2010
Beijing Petroleum Exchange (BPE), which began operation on Jul 30, will start spot trading of gasoil, gasoline, fuel oil, jet, lubricant, solvent oil, naphtha, etc. in the near term, according to a source with the exchange.

"Under our preliminary plan, we will launch just spot transaction, so we won't designate delivery stocks. We will conduct margin trading as Bohai Commodity Exchange, with the rate at 20%," the source said.

With regards to oil product trading, BPE will choose GB III gasoil and gasoline for transaction, as the market for GB IV resources is relatively small, the source said.

BPE is still conducting market research before it decides on major products for its spot trading, he added.

BPE was established in January 2008, with current gross capital at Yuan 450-mil. After the equity restructure in February 2009, BPE's shares go as follows: 30% for State-owned Assets Supervision and Administration Commission of People's Government of Beijing Municipality, 30% for PetroChina, 10% for Sinopec, CNOOC, Sinochem and Beijing-based Zhongyou Fangshan Yanbin Fuel Sale Co (transliteration), respectively.

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