MUSCAT: Shandong Chambroad Petrochemicals Co. has become the first independent Chinese refiner to trade Oman Crude oil futures on the Dubai Mercantile Exchange, the leading east of Suez energy exchange. The Chinese government allowed independent refiners to import crude oil for the first time earlier this year. So far 10 independent refiners have been granted approval by the Chinese authorities, with more expected to follow.
Shandong Chambroad is expanding its international operations significantly and expects to become a regular trader of the DME Oman contract. The refiner will use DME Oman crude oil futures for risk management and physical procurement. DME will hold a roundtable for independent refiners in Shandong, China in mid-May to assist other local participants with the Exchange’s registration process.
“We are delighted to welcome Shandong Chambroad to the DME,” DME managing director Owain Johnson said. “The independent Chinese refinery sector is the most exciting demand opportunity in the global oil markets right now and we are delighted to see these players select DME for their risk management needs.” Straits Financial was the DME clearing member that facilitated the trading activity.
“We are delighted to have enabled Shandong Chambroad to access the DME Oman Crude Oil Futures contract,” Straits’ executive vice president Roger Quek said. “Straits Financial is excited about the potential of the independent Chinese refining sector and we are looking forward to enabling other refiners to access the international energy markets.”
