In July, BP and Mercuria have become the first global trader to make a physical delivery to the Shanghai International Energy Exchange (INE) since the futures market was launched in 2018.
According to two sources with knowledge in the matter, BP delivered 3 million barrels of Iraqi Basra Light crude oil grade into an INE storage facility in Shandong, China, earlier this month. BP has also planned to deliver 1 million barrels of Abu Dhabi Upper Zakum crude in an August contract.
Swiss commodities trader Mercuria will follow suit, according to sources, with 1 million barrels of Upper Zakum grade in August and another 1 million barrels in September.
INE futures have been driven to a premium over Brent futures due to strong deliveries since May, supported by robust buying from Chinese financial investors, making the market profitable for traders.
To comply with the soaring demand for physical deliveries, since April INE has expanded its storage tank capacity by more than double, to almost 60 million barrels.
Tags: AlwaysFree,Asia Pacific,China,Crude Oil,English,NEA,World
Published on July 15, 2020 4:02 PM (GMT+8)Last Updated on July 15, 2020 4:02 PM (GMT+8)
