Regulator says crude oil futures market due this year

Guo Shuqing, China’s top securities regulator, said that the country will begin offering crude oil futures contracts this year, a move that could help companies hedge against oil price changes, The Wall Street Journal reported. Guo, chairman of the China Securities Regulatory Commission, said the new securities market would be part of a series of products coming on-line later this year. He added that the move could transform China into the world’s third-biggest crude oil futures market, behind the US and UK. However, Guo did not specify details such as what currency would be used or if foreign investors could tap the market. China has had a fuel oil futures market since 2004 on the Shanghai Futures Exchange. The country is the world’s second-largest oil consumer after the US, taking in over nine billion barrels per day, according to the International Energy Agency.