- The Shanghai INE is considering taking Singapore as a delivery point for its low sulfur marine fuel futures contract.
- The move would be the first time a Chinese futures contract would be deliverable outside of China and could boost liquidity for the contract.
The Shanghai International Energy Exchange (INE) is considering using oil storage sites in Singapore owned by PetroChina Co as a delivery point for its low-sulphur fuel oil futures contract, reports Reuters.
Delivery point for LSFO
The move could grant the futures greater influence over bunker pricing worldwide.
The INE may start using storage facilities in Singapore owned by PetroChina as a delivery point for the contract by the end of this year, citing two sources with direct knowledge of the matter.
Earlier in the week the INE posted a notice seeking feedback on the idea of using a delivery point outside China for the first time.
PetroChina International was Singapore’s largest bunker supplier by volumes last year, according to the country’s Maritime and Port Authority.
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Source: Reuters
