China's fuel oil futures have developed positively, playing an important role in the market since fuel oil contracts were listed in August, experts say.

The turnover in fuel oil on the Shanghai Futures Exchange(SFE) totalled about 36.4 million tons, worth of 80.3 billion yuan (US$9.7 billion) in its first two months, SFE statistics indicate.

In addition, fuel oil contracts saw increasing momentum earlier this month, with a daily turnover reaching about 3 million tons, statistics showed.

Under the approval of the China Securities Regulatory Commission, fuel oil contracts were listed for trading on August 25.

At present, four products, including copper, aluminum, natural rubber and fuel oil, are listed on SFE for futures trading.

"To accelerate the establishment and completion of a mechanism of risk dissipation on oil is beneficial to the sustained and healthy progress of the State economy," said Chu Juehai, senior director of the delivery Department under Shanghai Futures Exchange.

Zhu made his remarks at the Fuel Oil Futures Delivery and Inspection Consultation Seminar yesterday in Guangzhou, capital of South China's Guangdong Province.

Organized by the Guangdong Oil and Gas Association and the SFE, the seminar has attracted more than 200 fuel oil customers as well as other futures companies.

"The fuel oil listing on the futures exchange has provided a platform for oil traders to seek mutual benefits," Zhu said at the seminar.

In addition, Zhu said that the listing of fuel oil has helped customers and traders decrease risks of trade in the oil market.

The listing of fuel oil futures has also better regulated the price structure of oil-related products in the market system, according to Zhu.

Zhu revealed the SFE will better improve its service to customers and traders by launching its first fuel oil delivery project.

(China Daily November 18, 2004)